Prior Settlement Agreement Binding on Landlord

May 31, 2004

LVT Number: 17387

Landlord sued to evict rent-stabilized tenant for illegal subletting. Landlord claimed that tenant was profiteering. Landlord and tenant signed a settlement agreement in court. Tenant agreed to terminate the sublet, and landlord agreed to discontinue the court case ''with prejudice.'' Three months later, after subtenant moved out, landlord sued to evict tenant for profiteering by overcharging subtenants. Tenant asked the court to dismiss the case, claiming that the prior agreement had settled the matter. The court ruled against tenant. Tenant appealed and won.

Landlord sued to evict rent-stabilized tenant for illegal subletting. Landlord claimed that tenant was profiteering. Landlord and tenant signed a settlement agreement in court. Tenant agreed to terminate the sublet, and landlord agreed to discontinue the court case ''with prejudice.'' Three months later, after subtenant moved out, landlord sued to evict tenant for profiteering by overcharging subtenants. Tenant asked the court to dismiss the case, claiming that the prior agreement had settled the matter. The court ruled against tenant. Tenant appealed and won. The settlement agreement was based on the same facts raised in the new case. Landlord can't split off a claim for profiteering from the illegal sublet claim it already agreed to discontinue.

Hamir Realty Co. v. Shahar: NYLJ, 5/19/04, p. 24, col. 1 (App. T. 1 Dept.; Davis, JP, Gangel-Jacob, Schoenfeld, JJ)

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