The plaintiff landlords brought a motion for default judgment against the defendant tenant corporation and its principal for over $300,000 in rent arrears and possession of the residential premises.
The defendants brought a cross-motion to set aside their noting in default.
The court found the defendants had engaged in a bad faith campaign to game the system, occupying the premises rent-free for three years while illegally using it for business purposes.
The court dismissed the motion to set aside the noting in default, pierced the corporate veil to hold the principal jointly and severally liable, granted default judgment for the rent arrears, awarded $100,000 in punitive damages, and ordered immediate eviction.