Court Vacates Settlement Agreement to Let Tenant Assert Overcharge Claim

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Landlord and tenant signed a settlement agreement in court by which landlord got a judgment of possession. Tenant later asked the court to vacate the agreement and permit filing of an amended answer claiming rent overcharge. Tenant also asked that the case be delayed while he pursued a claim against landlord in State Supreme Court. The court refused to stay the eviction case but ruled that tenant could vacate the settlement agreement. Landlord’s use of preferential rents, failure to register the preferential rents, claims of implausibly large numbers of apartment renovations in a short time frame, and use of an unconscionable punitive late rent payment penalty should support an arguably meritorious rent overcharge claim. The housing court also could review tenant’s rent overcharge claim.

560-568 Audubon Realty Inc. v. Rodriguez: Index No. 67846/2016, NYLJ No. 1202782196377 (Civ. Ct. NY; 2/27/17; Stoller, J)