Rosenberg & Estis, P.C. secures appellate ruling giving landlords a faster path to rent payments

Manhattan, NY Rosenberg & Estis, P.C. has won an important appellate ruling highlighting landlords’ ability to obtain early financial relief from defaulting commercial tenants.

In Coral Broome Street LLC v. 398 Broome Street Inc., the Appellate Division granted a motion brought by Rosenberg & Estis, P.C. member Alex Estis, directing the tenant to pay use and occupancy at the base rent beginning January 1, 2026, after a lower court initially denied that request.

The case began on December 1, 2025, when Estis filed suit on behalf of the landlord after the tenant defaulted on $71,640 in rent and remained in possession of the property. The landlord sought possession, monetary damages, and statutory double rent for the holdover period.

Said Estis, “This decision highlights a critical issue for property owners. Tenants shouldn’t be allowed to stop paying rent just because a case is pending, and courts have the power to step in early and make sure owners are compensated.”

The decision has broad implications for New York City’s commercial real estate market, where landlords have increasingly faced prolonged nonpayment during litigation. “This is a reminder that landlords don’t have to sit back and absorb losses,” Estis said. “There are tools available to force the issue early, but you have to act quickly and aggressively.”

The Appellate Division’s decision makes clear that courts can order tenants to pay ongoing use and occupancy at the start of a case, particularly when there’s a clear default and continued occupancy. It also demonstrates the importance of early legal action, according to Estis.

“Too many owners assume they’re stuck waiting. This case shows that with the right approach, you can move fast, get a court order, and prevent tenants from using litigation as a delay tactic,” he said. “As we explained to the court, it really comes down to fairness. Either the landlord is right or the tenant is right. If the tenant wins, they get a credit. If the landlord wins, they’re paid what they were owed all along. There’s no reason a tenant should get a free ride while everyone waits for an extended legal process to move toward completion.”