Rent-regulation settlement against Pinnacle may be at risk

New York /
Apr.April 23, 2013 09:30 AM

A major rent-regulation settlement may be in jeopardy after a number of tenants complained that they were ineligible for millions of dollars in compensation from landlord Pinnacle Group, the New York Times reported.

On Monday, the tenants asked a Manhattan federal appeals court to overturn the class-action lawsuit settlement against Pinnacle, which was originally brought over allegations of rent overcharges and harassment. The original suit was brought against Pinnacle – an aggressive player in the rent-regulated market — and its principal owner Joel Wiener in 2007. The tenants alleged that that the company illegally inflated rents and “systematically” harassed them to move in order to secure higher rents. 

The tenants’ new team of lawyers said the settlement keeps 77 percent of the 22,000 tenants in Pinnacle buildings from receiving compensation from the landlord, and that Pinnacle should be liable for much more than it is required to pay.

A lawyer for Pinnacle, Mitchell Karlan, told the Times that the settlement had been “fair and reasonable,” and added: “We expect that the settlement will be approved just as it was.”

And Richard Levy, who negotiated the original class-action settlement for the tenants, told the Times that fewer than 1 percent of the plaintiffs were opposed to the original deal. The exclusions in the settlement, Levy said, were justified as they dealt with claims that either exceeded the statute of limitations or those that were a result of bad conduct of other landlords.

“It is very sad,” Levy said of the appeal. “All they have done here is delay the relief for the 22,000 plaintiffs.” [NYT]Hiten Samtani


Related Articles

arrow_forward_ios
Blackstone CEO Steven Schwartzman and Stuyvesant Town (Credit: Getty Images)
After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws
Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws
Tete-à-tete with TRD: How landlords are dealing with New York’s new rent laws
Real Capital Analytics data showed that New York’s multifamily market had a very slow July. (Credit: iStock)
New NYC rent law “beginning to shut down investment”
New NYC rent law “beginning to shut down investment”
Gary Barnett has another problem at UES site: a stabilized tenant
Gary Barnett has another problem at UES site: a stabilized tenant
Gary Barnett has another problem at UES site: a stabilized tenant
RSA President Joe Strasburg (Jefferson Siegel) and Governor Cuomo (Getty)
Landlords ask Cuomo to ditch eviction ban after ending Covid restrictions
Landlords ask Cuomo to ditch eviction ban after ending Covid restrictions
The Mercedes House (Photos via Instrata, Ten Arquitectos)
Nab this rent-stabilized penthouse for $8K per month
Nab this rent-stabilized penthouse for $8K per month
Crestwood Apartments in Middletown, New York. (Realtor)
North Point buys Hudson Valley apartment building for $19M
North Point buys Hudson Valley apartment building for $19M
(Getty)
Where the lawsuits challenging NY’s 2019 rent law stand
Where the lawsuits challenging NY’s 2019 rent law stand
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...