This story, in slightly different form, originally appearedin the New York Law Journal.

NEW YORK CITY-A state judge has handed tenants a major victoryby refusing to dismiss claims against the former owner of themassive Stuyvesant Town and Peter Cooper Village complex. Tenantsin 2007 brought the $215-million class action suit against thecurrent owners of the complex, Tishman Speyer Properties LLP, andits general partner, PCV ST Owner LP, as well as its former owner,MetLife.

While the Tishman defendants have pursued a settlement, MetLifefiled a motion to dismiss, arguing that a 2009 Court of Appealsruling overturning the conversion of rent-stabilized apartments tomarket rates created a new legal principle, which should not beapplied retroactively. MetLife argued that it had relied in goodfaith on a 1996 advisory letter issued by the New York StateDivision of Housing and Community Renewal , which concluded thatowners could seek luxury decontrol of housing units receiving J-51tax abatements, so long as the receipt of the benefits was not theonly reason the units were subject to rent regulation.