Overcharge Claim Dismissed Based on Prior Court Settlement

(Decision submitted by Brian Shaw of the Manhattan law firm of Golino Law Group PLLC, attorneys for the landlord.)

Tenants sued landlord for rent overcharge. The court dismissed the case based on a settlement agreement between landlord and tenants, which was signed in a prior court action. In the prior case, both sides were represented by attorneys. Tenants appealed and lost. Since the settlement agreement (a) stated that tenants were rent stabilized; (b) calculated in good faith the legal regulated rent for tenants; and (c) provided compensation for the claimed overcharges, the court in the second case correctly determined that the settlement agreement wasn't an attempt to circumvent the rent stabilization laws. Therefore, it was enforceable, and the second case was properly dismissed.

Kattan v. 119 Christopher LLC: Index Nos. 11089, 156876/16, 2020 NY Slip Op 01264 (App. Div. 1 Dept.; 2/20/20; Renwick, JP, Mazzarelli, Gesmer, Kern, JJ)