Nassau County Small Claims Court Properly Vacated Default Judgment Against Landlord

A Nassau County tenant sued former landlord in small claims court, seeking to recover her security deposit. The court ruled for tenant based on landlord's default and awarded her $1,615. The court subsequently granted landlord's request to vacate the default judgment, and dismissed tenant's claim after trial. Tenant appealed and lost. Tenant argued that landlord failed to present a reasonable excuse for its default. The appeals court disagreed. Tenant also argued that, under GOL Section 7-108(1-a), (e), landlord forfeited its right to retain tenant's security deposit. But that law applied only to unregulated apartments. Tenant was subject to rent stabilization, so that law, enacted in 2019 as part of HSTPA, did not apply. The small claims court's judgment dismissing the action rendered substantial justice between the parties and was upheld.

Parker v. SJR & Assoc.: Index No. 2021-730 NC (App. T. 2 Dept.; 5/11/23; Garguilo, PJ, McCormack, Walsh, JJ)