Landlord Can't Seek Late Fees in Rent Demands

Section 8 tenants sued landlord, claiming that landlord’s demands for certain payments violated General Business Law Section 349. Landlord had sent tenants letters stating that it would no longer accept partial rent payments and returned rent checks to tenants when Section 8 subsidy checks hadn’t been received. Tenants also objected to landlord’s inclusion of late fees in three-day rent demands and claimed landlord couldn’t seek non-rent charges in nonpayment proceedings. The court ruled for tenants. The only amounts tenants had to pay to prevent a nonpayment proceeding was the overdue rent. The ancillary late fees weren't part of the back rent due in a summary proceeding. Landlord’s rent demands violated GBL Section 349 as a deceptive business practice, and the court ordered landlord to stop including late fees in its rent demands. Landlord wasn’t obligated to accept partial rent payments, but couldn't reject payment of rent that didn’t cover ancillary charges such as late fees. 

Bryant v. Casco Bay Realty Ltd.: Index No. 69135/12, NYLJ No. 1202726157374 (Sup. Ct. Westchester; 4/9/15; Colabella, J)