The Real Deal New York

Appellate court upholds decision in Carol Cohen rent saga

December 20, 2012 05:30PM
By Katherine Clarke

Carol Cohen and 737 Park Avenue

Brown Harris Stevens broker Carol Cohen, formerly of the Corcoran Group, has triumphed against her landlord in the second round of a legal battle over her rent-stabilized apartment, The Real Deal has learned, bringing an end to the two-year dispute.

The New York State Supreme Court Appellate Division ruled today that there was no evidence to substantiate landlord Katz 737′s long-held assertion that Cohen and husband, Lester, had lied about their income on state forms in order to prevent a rent increase at their apartment at 737 Park Avenue.

Katz 737, which is made up of several family members of the late real estate developer and investor Louis Katz, no longer owns 737 Park Avenue, following the purchase of the building last year by Harry Macklowe and Los Angeles-based private equity firm CIM Group.

“The landlord’s fraud allegations, even construed most favorably to the landlord, are wholly speculative, since there are no allegations from which it could reasonably be inferred that the Cohens provided fraudulent income statements,” the appeals court said in its decision.

The initial lawsuit, which led to Cohen’s reported 2010 dismissal from Corcoran, alleged that the couple had hidden their true income “in a manner equivalent to ‘tax evasion’” in order to maintain the apartment, which reportedly costs just $3,060 per month. The plaintiff alleged that, as a leading broker in the sale of luxury apartments, Cohen’s income would have been well above $175,000 over two years.

“Her income from even just a handful of the sales for which she claimed responsibility would, at ‘standard’ brokerage rates, have yielded her income well in excess of the applicable threshold,” the complaint alleged.

However, a state trial court sided with Cohen, prompting her landlord to appeal the decision this past February.

While the most recent decision brings the case to at least a temporary conclusion, the landlord could potentially seek leave to appeal to the Court of Appeals, the state’s highest court.

An attorney for the landlord declined to comment. Cohen was not immediately available.

3 Responses to “Appellate court upholds decision in Carol Cohen rent saga”

  1. December 20, 2012 at 6:59 pm, Harlemite said:

    The courts in NY no longer work – complete kangaroo courts.
    They’ve lost all sense of reason and any sense for enforcing the law.

  2. December 21, 2012 at 1:34 pm, Piedaterre said:

    Industry veteran Carol Cohen proudly delivers an exceptional level of service to buyers and sellers while bringing her wealth of experience to the art of real estate. With over twenty-five years of experience, Carol is recognized as one of the foremost authorities on New York City residential real estate and one of the nation’s top producing agents. In 2010, 2008, 2007 and 2006, Carol was recognized by The Wall Street Journal and Real Trends as in the top one-half of one percent of agents in the country. During a storied career, as part of an award winning partnership, Carol has participated in real estate sales approaching $1 billion. Since 2011, Carol has been proud to be a part of Brown Harris Stevens, New York’s quintessential luxury residential real estate firm.

  3. December 23, 2012 at 10:02 am, Building Equity Management said:

    Piedaterre just made the landlord’s case. How can a broker with this reputation not make enough to be subject to luxury decontrol? Amazing what a good lawyer and good accountant can pull off.

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