Co-op Owner Excused from Minor Breach of Settlement Agreement

Landlord cooperative corporation sued to evict co-op unit proprietary lessee for nonpayment of maintenance. After trial, lessee paid the full $9,300 of back rent owed and signed a settlement agreement to pay attorney's fees to landlord totaling $13,250 in 16 monthly installments due the first day of each month and to make new maintenance payments as they became due. The settlement agreement also resulted in a judgment for landlord and the issuance of an eviction warrant. Lessee's first payment was $8 short and wasn't transferred to landlord's account until after landlord sent a default notice. Landlord sought to execute on the warrant, and lessee sought a stay. The court ruled for lessee. Landlord appealed and lost. The court found that the breach was insubstantial and that lessee shouldn't be evicted for this minor default. One judge disagreed, noting that lessee had dragged the case out and caused the co-op building to pay attorney's fees while withholding maintenance payments for an extended period.

361 West 121st Housing Dev. Fund Corp. v. Frazier: NYLJ, 12/7/09, p. 27, col. 4 (App. T. 1 Dept.; McKeon, JP (dissenting), Heitler, Shulman, JJ)