A New York court recently ruled on a significant case regarding rent stabilization, impacting tenants and landlords across the state. The Appellate Division of the Supreme Court of the State of New York decided in the case of Petrolawicz v. Ando Realty LLC, Index No. 650815/22, that tenants can challenge the deregulated status of their apartments at any time during their tenancy. This ruling is important as it clarifies tenants' rights in relation to rent stabilization laws.
The case began when Joseph Petrolawicz and other tenants (the plaintiffs-appellants) filed a lawsuit against Ando Realty LLC (the defendant-respondent) regarding the rent-regulatory status of their apartment. The tenants believed their apartment should still be rent-stabilized, despite the landlord's claims of deregulation. The dispute escalated to the court after the tenants sought a declaratory judgment to confirm their apartment's rent-regulatory status.
The case was initially heard in the Supreme Court, New York County, where Judge Lori S. Sattler denied the tenants' motion for summary judgment. The court also granted the landlord's cross-motion for summary judgment, dismissing the complaint and awarding attorneys' fees to the defendant. This decision prompted the tenants to appeal the ruling.
The Appellate Division reviewed the case and issued its ruling on October 1, 2026. The court modified the previous decision, denying the landlord's cross-motion for summary judgment. The judges on the panel included Moulton, J.P., Kennedy, Friedman, Michael, and Hagler. The court emphasized that a tenant has the right to challenge the deregulated status of their apartment at any time during their tenancy. The ruling stated, "A tenant may challenge the purportedly deregulated status of their apartment at any time during their tenancy, and the apartment's rent history may be examined beyond four years to determine whether it remains rent-stabilized." This clarification is crucial for tenants who may feel their rights are being infringed upon.
The court further noted that the landlord's evidence to support their claim of deregulation was insufficient. The affidavit provided by a member of the landlord's managing agent did not properly authenticate the documents as admissible business records. As a result, the court found that the landlord failed to make a prima facie showing of entitlement to judgment as a matter of law. The court concluded that the landlord's cross-motion for summary judgment should have been denied, regardless of the opposing papers' sufficiency.
This ruling has significant implications for tenants in New York. It reinforces the idea that tenants can challenge the status of their apartments and that landlords must provide adequate documentation to support claims of deregulation. The decision also sets a precedent that allows for a thorough examination of rent histories beyond the previous four-year limit, which could benefit many tenants who feel they have been wrongfully deregulated.
Going forward, this ruling empowers tenants to assert their rights regarding rent stabilization. It may lead to more challenges against landlords who attempt to deregulate apartments without proper justification. The decision also serves as a reminder to landlords to maintain accurate records and be prepared to substantiate their claims regarding rent status.
As for what’s next, it is unclear if the landlord will seek to appeal this ruling. The court filing did not mention any pending related cases. However, the outcome of this case could influence future disputes over rent stabilization in New York, as it clarifies the rights of tenants and the responsibilities of landlords.