Prior Agreement to Settle Repair Issues by Arbitration Ruled Invalid

Tenant filed a proceeding against landlord, seeking repair of roof, water damage to his apartment, and window defects. Landlord asked the court to delay or dismiss the case. Landlord pointed out that in a prior settlement agreement, landlord and tenant agreed that any future dispute would be resolved by arbitration. The court ruled against landlord. Landlord appealed and lost. Arbitration generally is encouraged to resolve disagreements. But a proceeding concerning the lack of essential services, critical repairs, or emergency conditions involves more than the typical landlord-tenant dispute. HPD becomes involved and has an interest in making sure that landlord complies with maintaining housing standards. An arbitrator may simply rule based on what seems fair, and not consider landlord's legal obligations to correct building violations. As a matter of public policy, the prior agreement between landlord and tenant to submit their dispute to arbitration can't be applied to this case.

D'Agostino v. Forty-Three East Equities Corp.: NYLJ, 6/26/07, p. 28, col. 2 (App. T. 1 Dept.; McKeon, PJ, McCooe, Schoenfeld, JJ)