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City of New York v. Smart Apartments LLC

959 N.Y.S.2d 890 (2013)

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City of New York v. Smart Apartments LLC

New York Supreme Court, New York County
959 N.Y.S.2d 890 (2013)

  • Written by Tanya Munson, JD

Facts

Smart Apartments LLC (Smart Apartments) (defendant) operated a multi-tiered business of advertising, booking, operating, and maintaining transient accommodations for short-term stays of less than 30 days. Smart Apartments offered these stays in as many as 50 multiple-dwelling buildings in New York City that were designated as nontransient Class A buildings. Smart Apartments failed to provide transient occupants with fire extinguishers, sprinklers, alarms, or evacuation plans. Smart Apartments advertised these stays online but made no mention of the fact that the stays were illegal or that the units were in violation of the fire-safety code. The Housing Maintenance and Building Codes of Chapter 225 of the Laws of New York of 2010 prohibited stays of less than 30 days in residential buildings and required that transient dwellings implement more fire-safety measures than traditional nontransient properties. The City of New York (plaintiff) filed suit against Smart Apartments for deceptive trade practices under the consumer-protection law and public nuisance under the common law. The City of New York moved to enjoin Smart Apartments from advertising, contracting, or allowing for transient occupancy in any buildings where transient occupancy was illegal.

Rule of Law

Issue

Holding and Reasoning (Engoron, J.)

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