(This story, in slightly different form, originally appeared in the New York Law Journal.)

NEW YORK CITY-A stipulation in which a couple agreed to pay higher-than-legal rent in return for their landlord allowing them to remain in a rent-stabilized apartment that was not their primary residence was declared void and unenforceable yesterday by the Court of Appeals. The 1996 apartment stipulation stated that tenants Victoria Munroe and Eric Saltzman would pay $2,000 a month for their rent-stabilized apartment at 155 Riverside Dr. on Manhattan’s Upper West Side, or $675 a month more than the legal rent on the dwelling. The apartment, actually three adjacent apartments consolidated into one by the tenants, was then to be held by the tenants “regardless” of the fact their primary residence appeared to be in Cambridge, MA.

In 2000, the apartment was deregulated. Under the terms of the stipulation, the tenants were offered renewal leases every two years with rent increases of 8%, according to the Court’s decision, which was written by Judge Robert S. Smith. When a new manager took over the building for its owners, Riverside Syndicate, eviction proceedings were begun in 2004 to have the 1996 stipulation declared void and contrary to the public policy of the Rent Stabilization Code.

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