Housing Court Can Decide Whether Agreement Was Breached

Landlord sued to evict tenant in housing court. Landlord and tenant signed a settlement agreement in court. Tenant agreed to move out in exchange for $555,000. Landlord later claimed that tenant violated a confidentiality clause in the settlement agreement, and sought return of the funds received from landlord. Tenant claimed that landlord failed to disclose an agreement with other remaining rent-stabilized tenants in the building, in violation of the settlement agreement. The case was restored to the housing court calendar.
Landlord also sued tenant in State Supreme Court. Landlord asked the Supreme Court to delay the housing court case and combine it with the Supreme Court case. The Supreme Court refused. Landlord appealed and lost. The central issue in both cases was whether tenant violated the confidentiality provision of the settlement agreement. Housing court had the authority and expertise to rule on that issue. Landlord argued that the case would require pretrial questioning, which isn't automatically available in housing court. But the housing court can order pretrial questioning and document production if needed.

952 Associates, LLC v. Palmer: NYLJ, 6/5/08, p. 36, col.6 (App. Div. 1 Dept.; Andrias, JP, Gonzalez, Moskowitz, DeGrasse, JJ)