Court Sets Aside Settlement Agreement

October 15, 2015

LVT Number: #26536

Landlord sued to evict rent-stabilized tenant for nonpayment of rent, and they signed a settlement agreement in court. Tenant later obtained an attorney and asked the court to vacate the settlement. She now claimed rent overcharge. The court ruled for tenant and reopened the case. Landlord appealed and lost. Landlord claimed that the settlement stipulation was a binding agreement. But tenant showed she had a potentially meritorious rent overcharge claim that she shouldn't be forced to give up due to her decision without counsel to consent to a judgment in landlord’s favor.

Landlord sued to evict rent-stabilized tenant for nonpayment of rent, and they signed a settlement agreement in court. Tenant later obtained an attorney and asked the court to vacate the settlement. She now claimed rent overcharge. The court ruled for tenant and reopened the case. Landlord appealed and lost. Landlord claimed that the settlement stipulation was a binding agreement. But tenant showed she had a potentially meritorious rent overcharge claim that she shouldn't be forced to give up due to her decision without counsel to consent to a judgment in landlord’s favor. The case was sent back so that the apartment’s rent history could be examined by the parties and the court.

 

 

 
Tabak Associates, LLC v. Vargas: 48 Misc.3d 143(A), 2015 NY Slip Op 51314(U) (App. T. 1 Dept.; 9/11/15; Hunter, Jr., JP, Shulman, Ling-Cohan, JJ)

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