Court Can't Rule on Release of Surrender Payout Held in Escrow

Landlord sued to evict tenant. Landlord and tenant signed a settlement agreement in housing court. They agreed that landlord would deposit $25,000 into his attorney's escrow account. If tenant moved out by a certain date, landlord would pay tenant the $25,000. If tenant didn't move out by that date, the money would be released back to landlord. When tenant didn't move out on time, landlord's attorney asked the court for permission to release the funds. The court ruled for landlord, and tenant appealed. Tenant and landlord had also agreed in the settlement stipulation that landlord would give tenant $5,000 for moving costs. Tenant claimed that he didn't move out on time because landlord didn't give him the $5,000. The appeals court ruled that the funds couldn't be released yet. Housing court is part of the Civil Court. Civil Court has only limited authority to grant injunctive relief. Landlord and tenant must go to the State Supreme Court for a ruling on who was entitled to release of the funds.

Yaakov v. Kupershalayak: NYLJ, 10/23/07, pg. 37, col. 2 (App. T. 1 Dept.; Pesce, PJ, Golia, Rios, JJ)