Lease Didn't Provide for Attorney's Fees

Tenant sued landlord for: (a) a declaratory judgment voiding a settlement in a prior rent overcharge action against prior landlord and determining tenant's lawful rent;; and (b) damages for his claimed overcharge. Landlord in turn asked the court to dismiss tenant's claim, and grant it attorney's fees.

The court dismissed tenant's claims, and landlord then asked the court for attorneys' fees totalling $51,000 since tenant's case was dismissed. The court ruled against landlord. The parties' first lease clause on attorney's fees only covered lawsuits between landlord and tenant when claims arose from tenant's default under the lease. This case didn't involve any tenant default. The parties' second lease clause on attorney's fees covered lawsuits brought against landlord "because of tenant actions." That applied, for example, in a tort or insurance-subrogation action against landlord for damages stemming from tenant's conduct. The court otherwise found no basis to apply the lease's indemnity provision to provide for attorney's fees in this case. As a matter of law, although landlord successfully defeated tenant's claims, the lease didn't require tenant to pay landlord's attorney fees.

Kattan v. 119 Christopher LLC: 69 Misc.3d 1223(A), 2020 NY Slip Op 51469(U)(Sup. Ct. NY; 12/11/20; Lebovits, J)