Pinnacle Tenants in Harlem Sue Landlord
Real Estate
Pinnacle Group and Wiener’s ownership is linked to over 420 apartment buildings that contain more than 21,000 apartment units and approximately 60,000 tenants. Manhattan has approximately 194 Pinnacle apartment buildings; Brooklyn, 110; the Bronx, 64; Queens, 60 and Staten Island, 3.
In their 2007 complaint, the plaintiff-tenants alleged that Pinnacle and Wiener fraudulently inflated rents, failed to make needed repairs and groundlessly harassed tenants out of rent-regulated apartments throughout New York City.The lawsuit charges that the Pinnacle Group’s conduct violates the Racketeer Influenced and Corrupt Organizations Act (RICO) as well as the New York State Consumer Protection Act and seeks, among other forms of relief, payments for overcharged rents, immediate injunctive relief to restrain unlawful behavior and the creation of an independent body to ensure lawful management of buildings.
In one of the most far – reaching court decisions in New York City’s history that could potentially benefit thousands of tenants in rent – regulated apartments across the city, Judge McMahon’s opinion stated that, if plaintiffs’ allegations are true, “all of [Pinnacle’s] rent-regulated tenants either have been subjected to, or are at risk of being subjected to the same pattern of racketeering.” Also, the decision certified a class comprised of “all persons who [as of April 27, 2010] are tenants in rent-regulated apartments in New York City directly or indirectly owned in whole or in part by Pinnacle Enterprise” and a Liability Class so that those tenants seeking damages for Pinnacle’s conduct will have the opportunity to prove that Pinnacle and Wiener violated RICO and state consumer laws. The Liability Class is comprised “of all persons who, at any time between July 11, 2004 and April 27, 2010 were tenants in rent-regulated apartments in New York City directly or indirectly owned in whole or in part by the Pinnacle Enterprise.”
Plaintiffs will now gather evidence to prove that the defendant violated the law. After that evidence is proven, the court will decide how to proceed with the determination of each tenant’s damages. Borough President Stringer, the plaintiffs and BRUSH will hold a meeting with current and former Pinnacle tenants from across the five boroughs on May 23rd from 1:00 p.m. to 3:00 p . m . at the Oberia Dempsey Center on 127 West 127th Street. The meeting has been designed as a “class action classroom” to help tenants fully understand the lawsuit and their rights, answer their questions, and provide the opportunity to submit key evidence to the case.
“This lawsuit constitutes an unprecedented fight against allegedly unscrupulous corporate landlords and a powerful show of resistance for middle – and low-income residents throughout the city who believe that illegal tactics are being used to drive them out,” said Manhattan Borough President Scott M. Stringer. “With its power and money, the defendants may have cynically considered this lawsuit just another cost of doing business. But instead, justice will be served, and now tenants in West Harlem and beyond have reached a milestone that could benefit one of the largest tenant populations in the City.”
“This lawsuit is a huge victory for all working people in New York City and retired and elderly tenants, too,” said Andres Mares-Muro, a key member of the plaintiffs’ group. “At a time when we are all living on less and less and terrified of losing our jobs, this racketeering suit is the first step in protecting us from losing our homes. It sends a message to flippers and speculators whose ‘ business plan ’ is to harass us and drive us out of our apartments that we’re not going to put up with it. It is evidence that the system does work and the little guy – all of us – can fight back against unscrupulous landlords and the Wall Street speculators who bankroll them.”
“Jenner & Block lawyers and professionals spent more than 6,000 hours during the past three years investigating the Pinnacle Group and Joel Wiener, interviewing tenants and preparing the complaint that led to the class certification,” said Richard F. Levy, a partner at Jenner & Block LLC, the law firm appointed Lead Counsel for the Class. “We look forward to proving these allegations in Court.”
“We are extremely happy with the court’s direction on certification of the issues,” said BRUSH Board Member Eric Andrews. “As a non-profit organization engaged in the business of preserving affordable and quality housing, we think this recent court decision of class certification against the Pinnacle Group, whose questionable management practices were the primary basis for the formation of BRUSH, is a widespread victory for all communities similarly situated.”
As stated in the lawsuit filed by the West Harlem tenants, Pinnacle and Wiener are financed in part by a six-billion-dollar real estate investment firm, the Praedium Group, to undertake a self-described “value enhancement” business strategy, an apparent policy of harassing tenants to the point of eliminating rent-regulated units. Included among the list of harassing techniques allegedly used by Pinnacle and Wiener are:
· Seeking to collect illegal rents based on fraudulent claims of individual apartment improvements and major capital improvements;
· Failing to make necessary and reasonable repairs to address housing maintenance code violations;
· Commencing unfounded court proceedings to challenge tenants’ succession rights;
· Unjustifiably refusing to accept tenants’ rent checks and then claiming non-payment; and
· Directing and encouraging superintendents of its buildings to make unacceptable and shoddy repairs or make false promises to conduct repairs.
The City’s Department of Housing Preservation and Development (HPD) website currently lists multiple apartments under Pinnacle management with a long list of uncorrected violations, including hazardous violations like inadequate fire exits, lead-based paint, and lack of heat and hot water. Many of these hazardous “Class C” violations have not been addressed for years, despite the fact that the Housing Maintenance Code requires owners to correct Class C violations within 24 hours.
“This is a seminal housing court decision; the alleged unscrupulous practices by Pinnacle have adversely affected the lives more than 60,000 tenants, including Washington Heights-Inwood residents that I represent,” said Assembly Member Adriano Espaillat. “The alleged failure to make needed repairs and harassment of rent-regulated tenants has reached a precipice and I encourage everyone affected by this to attend the important May 23rd meeting.”
“This court’s decision to accept the Pinnacle tenants’ request as a class action is the first major victory that gives Pinnacle tenants their day in court, and I anticipate that more judicial victories will follow,” said Assembly MemberHerman D. Farrell, Jr. “For many years, I have worked with residents of the Dunbar Building and other buildings owned by Pinnacle and heard their stories of harassment and intimidation. Now, a federal judge will hear their stories.”
“We in Harlem have been battling Pinnacle for years now and this Class Action certification is a step in the right direction for the protection of tenants throughout New York City,” said Assembly Member Keith Wright.“Tenant harassment will not be tolerated and based upon the actions of Pinnacle and other nefarious landlords, I have introduced over a dozen bills in the New York State Assembly to stop the tactics which destroy our communities. I commend the tenants for their resilience in fighting this corporation and look forward to the day when all City residents are protected from such abuse by law.”
“This is a huge step in the right direction,” said Council Member Robert Jackson. “A judge who listened and carefully evaluated the complaints plus a dedicated, knowledgeable grass-roots tenant organization that would not give up added to skillful legal representation is an equation that will produce justice for the residents in Pinnacle’s buildings throughout the city, most particularly in West Harlem. I am elated by this announcement.”
No comments:
Post a Comment