Kramer Levin Wins Dismissal of Landlord’s Suit Attempting to Hold GMHC Liable for Rent of Tenant Receiving HIV/AIDS-Related Rent Subsidies

Kramer Levin won a victory in state court for Gay Men’s Health Crisis (GMHC), a long-time firm client, which had been sued by a landlord for rent allegedly owed to the landlord by an HIV-positive woman who received rent subsidies from a program administered by GMHC.  GMHC disburses federally funded rent subsidies to people living with HIV/AIDS, but was not a party to the rental lease; had no other agreement with landlord; and indeed did not communicate with the landlord at all beyond issuing a monthly check in the amount of the subsidy.  Kramer Levin filed a motion to dismiss, arguing that there was no legal relationship between the landlord and GMHC that could support liability on any theory, and, further, that dismissal was proper on public policy grounds to prevent converting GMHC from a resource for low-income people with AIDs to a fund insuring landlords against the risk of tenant default.  The New York City Civil Court granted the motion to dismiss in December 2013.  Litigation associate Peggy J. Farber took the lead in briefing and arguing the motion to dismiss.  Litigation partner Jeffrey S. Trachtman also worked on the case.