NYC Landlord Not Guilty of Harassing Nonpaying Tenant

What Happened: In May 2020, with the pandemic in full rage, New York City adopted a law banning commercial landlords from harassing tenants. A bridal shop tenant invoked the law after the landlord sued it and its guarantor for unpaid rent and additional rent for real estate tax and utilities cost escalations. The court didn’t buy it and awarded the landlord summary judgment without need for a trial. The tenant appealed.

Ruling: The New York appeals court nixed the appeal and awarded the landlord $146,000: $114,000 from the tenant and $32,000 from the guarantor.

Reasoning: The NYC law defines “harassment” as, among other things, “attempting to enforce a personal liability provision that the landlord knows or reasonably should know is not enforceable.” The lower court ruled that the tenant and guarantor weren’t on the hook for the additional rent, the court acknowledged. But, it continued, the defendants didn’t produce any evidence showing that the landlord knew the guaranty was unenforceable, especially since the events unfolded during the uncertain times of the COVID pandemic when the rules of what a landlord could and couldn’t collect were fluid and constantly shifting.

• Avamer 57 Fee LLC v. Gorgeous Bride, Inc., 2022 N.Y. Misc. LEXIS 3588, 2022 NY Slip Op 32605(U)