Landlord Can't Seek Accelerated Rent After Tenant Evicted

November 28, 2016

LVT Number: #27352

Landlord sued former tenant for damages after tenant was evicted for nonpayment of rent. No money judgment was entered in the nonpayment case based on tenant’s failure to appear in court. In the subsequent case for damages, landlord sought back rent owed but also sought accelerated rent based on a provision in tenant’s lease. The accelerated rent clause gave landlord the right, after tenant’s default, to demand the entire balance of unpaid rent owed under the lease for the remainder of the lease term. The court ruled against landlord on this point.

Landlord sued former tenant for damages after tenant was evicted for nonpayment of rent. No money judgment was entered in the nonpayment case based on tenant’s failure to appear in court. In the subsequent case for damages, landlord sought back rent owed but also sought accelerated rent based on a provision in tenant’s lease. The accelerated rent clause gave landlord the right, after tenant’s default, to demand the entire balance of unpaid rent owed under the lease for the remainder of the lease term. The court ruled against landlord on this point. An accelerated rent clause is generally unenforceable as courts find it unconscionable. 

 

 

Chili Venture LLC v. Stahl: 2016 N.Y. Slip Op. 26342, 2016 WL 6209452 (City Ct. Rochester; 10/24/16; Yacknin, J)

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