Landlord Can't Collect Rent Where Building Had No C of O

Landlord sued to evict tenant for nonpayment of rent. Landlord and tenant signed a settlement agreement in court. Tenant agreed to pay $14,000 in back rent, and an eviction warrant was stayed pending payment. Tenant later defaulted but asked the court to reopen the case and dismiss it. The court ruled for tenant. Tenant claimed that landlord was operating an illegal rooming house at the building and therefore wasn't entitled to collect rent. The court found that DOB had denied landlord's request for a "letter of no objection" certifying the property's legal use as a three-family house. An HPD "I" card for the building also showed 10 class B furnished rooms listed for the building. Without a Certificate of Occupancy or letter of no objection showing a legal use, landlord couldn't collect rent. Since tenant had unknowingly waived a complete defense to the nonpayment petition, the court vacated the judgment and warrant, and dismissed the case.

Cashew Holdings LLC v. Thorpe-Poyser: Index No. 81461/16, NYLJ No. 1513392683 (Civ. Ct. Queens; 12/1/17; Kullas, J)