Sapp v. Clark Wilson, Inc., 2022 NY Slip Op 04184 (2022)

Citation: Sapp v. Clark Wilson, Inc., 2022 NY Slip Op 04184 (2022)
Parent Document: Sapp v. Clark Wilson, Inc., 2022 NY Slip Op 04184 (2022)
Jurisdiction: New York (state)
Effective Date: 2022-06-29
Original Source: https://www.courtlistener.com/opinion/6620002/sapp-v-clark-wilson-inc/ ↗

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As is relevant to this appeal, the plaintiffs, formerly homeless individuals residing in apartments in buildings in Brooklyn (hereinafter the buildings) owned by the owners, commenced two separate actions in October 2015 and September 2016, respectively, alleging, inter alia, that the owners, acting in concert with, among others, the We Care companies, created an illusory tenancy scheme with the purpose of depriving the plaintiffs of their rights under the Rent Stabilization Code (first, second, and third causes of action). The two actions were subsequently consolidated. The plaintiffs alleged that, in 2002, the owners began renting apartments in the buildings to We All and We Care, for-profit organizations, which then contracted with the New York City Department of Homeless Services (hereinafter DHS) purporting to assist in finding shelter and services for homeless families pursuant to the Neighborhood Based Cluster Transitional Residence Program (hereinafter the Cluster Program). There is no dispute that the buildings are subject to the Rent Stabilization Law. The plaintiffs further alleged that they subsequently moved into the apartments in the buildings and DHS paid the rent to We All and We Care—in amounts designated by the owners and above what was permitted by the applicable Rent Stabilization Code for each apartment. In 2008, after DHS changed its policy to require the Cluster Program service providers to operate as not-for-profit organizations, We All and We Care subleased the apartments to the not-for-profit social service provider CAMBA, Inc. (hereinafter CAMBA), which then contracted with DHS to use these subleased apartments as temporary housing for homeless individuals and families. The plaintiffs alleged that the subleasing to CAMBA ended in 2014 and We Always was created to assume the role of the not-for-profit service provider to contract with DHS so as to further continue the creation of illusory tenancies under the Cluster Program. The plaintiffs further alleged that the homeless families residing at the building owned by Clark Wilson, Inc., were informed by DHS that it planned to stop using that building as of October 31, 2015; the plaintiffs were also informed by DHS that it was terminating its relationship with We Always in connections with all of the owners' buildings as of June 30, 2016.

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