Landlord sued to evict tenant for nonpayment of rent. The court ruled for landlord based on tenant’s default, gave landlord a judgment of possession, and awarded landlord $11,000 in back rent owed. The court denied tenant’s request to vacate the default judgment. Tenant appealed and won. Tenant argued that her monthly rent was $1,449 but her lease contained a clause permitting landlord to charge an alleged legal regulated rent of $2,509 if tenant didn’t make rent payments by the fifth day of the month. Tenant said that the sums awarded to landlord by the lower court were improperly based on higher monthly rents. The appeals court found that the rent “discount” scheme contained in tenant’s lease was in fact an unconscionable late charge and penalty because the increase was excessive and grossly disproportionate to any damage that could result by tenant’s late payment of rent. The case was sent back to the lower court for further fact-finding.
Park Haven, LLC v. Robinson: 45 Misc.3d 129(A), 2014 NY Slip p 51540(U) (App. T. 2 Dept.; 10/3/14; Pesce, PJ, Aliotta, Elliot, JJ)
