Landlord's CEO Must Pay Building Violation Fines

HPD sued landlord for failing to correct many violations at 13 apartment buildings. HPD and landlord signed a settlement agreement in court. Landlord, a corporation, and its individual CEO agreed that landlord would pay a $50,000 fine by a certain date. If it did so, HPD would give the CEO a satisfaction of judgment. If it failed to do so, HPD would take a judgment against both for $100,000. When landlord didn't pay the fine, HPD entered the judgment. The CEO later asked the court to vacate the agreement. He claimed that he never intended to accept personal liability for the fines and that he wasn't the owner of the buildings. The court ruled against landlord. The CEO appealed and lost. The terms of the settlement agreement were clear. Landlord's CEO admitted that he was an owner of the building under the Multiple Dwelling Law. He was represented by an attorney in court, and agreed that he was responsible for removing the building violations. There was no showing of fraud, accident, mistake, or duress sufficient to vacate the agreement.

HPD v. Alpha & Omega, Inc.: NYLJ, 2/28/08, p. 37, col. 5 (App. T. 2 Dept. Weston Patterson, JP, Rios, J)