In 25 W. 13th Street Corp. v. Gerevitz, 128 Misc. 2d 74 (Civ Ct, NY County 1985), the plaintiffs did not occupy the units but subleased them. The subtenants were not parties to the suit. The court held that the tenants were the occupants, for purposes of the warranty, so that plaintiffs had no standing to sue and dismissed the action.
In dicta, the court noted that the plaintiffs had charged full rent for the units, making it inequitable for them to obtain a rent abatement based on the warranty.