Former Illegal Subtenant Gets Deregulated Lease

Landlord sued to evict rent-stabilized tenant for illegal subletting in 2002. Tenant gave up the apartment, and landlord signed a settlement agreement in court with subtenant. Landlord gave subtenant a deregulated lease because new legal rent was over $2,000 per month. Landlord also gave subtenant, now new tenant, a preferential rent. Landlord renewed new tenant's lease once but then refused to renew a second time. Tenant sued landlord, claiming that he was subject to rent stabilization and that he hadn't waived his rights under the Rent Stabilization Law by signing the settlement agreement in court. Landlord asked the court to dismiss tenant's case. The court ruled against landlord. Landlord appealed and won. The settlement agreement gave tenant no rights or status under the Rent Stabilization Law. And if tenant wants to vacate the settlement agreement, he must go back to housing court to make his claim.

Jazilek v. Abart Holdings LLC: NYLJ, 6/7/07, p. 26, col. 6 (App. Div. 1 Dept.; Andrias, JP, Friedman, Sullivan, Williams, Catterson, JJ)