Court Refused to Enforce Attorney's Fees Clause Against Tenant

Facts: Tenant sued landlord for a rent overcharge after she moved out of her apartment. Landlord had never complied with a DHCR harassment order and had never initially registered tenant's apartment. The court ruled against tenant based on the four-year time limit for overcharge complaints imposed by the Rent Regulation Reform Act of 1997. Landlord then asked the court for attorney's fees as allowed by a clause in tenant's lease. The court ruled against landlord, and landlord appealed. Court: Landlord loses. When tenant started her case against landlord, the law allowed her rent overcharge claim. The law changed while her case was pending so that her overcharge claim became time-barred. Since there was no default by tenant and it wasn't her fault that the law changed, the appeals court ruled that each side should pay its own attorney's fees.

Rose v. Montt Assets, Inc.: NYLJ, 12/7/00, p. 28, col. 4 (App. T.1 Dept.; McCooe, JP, Davis, Gangel-Jacob, JJ)