Roommate Bound by Settlement Agreement

June 30, 2001

LVT Number: 15122

Landlord sued to evict rent-stabilized tenant. Landlord, tenant, and tenant's roommate signed a settlement agreement in court. Tenant moved out, and roommate received a three-year sublease, with a right of first refusal on a new lease after that. Roommate later asked the court to vacate the agreement. The court ruled against roommate. She appealed, claiming that the agreement improperly caused her to waive her rights under rent stabilization. The appeals court also ruled against roommate. When she signed the settlement agreement, roommate had no rights under rent stabilization.

Landlord sued to evict rent-stabilized tenant. Landlord, tenant, and tenant's roommate signed a settlement agreement in court. Tenant moved out, and roommate received a three-year sublease, with a right of first refusal on a new lease after that. Roommate later asked the court to vacate the agreement. The court ruled against roommate. She appealed, claiming that the agreement improperly caused her to waive her rights under rent stabilization. The appeals court also ruled against roommate. When she signed the settlement agreement, roommate had no rights under rent stabilization. She was subject to eviction. So she was bound by the agreement. Landlord had fulfilled its part of the agreement by giving roommate the right of first refusal on a new lease.

Congregation Kahal Minchas Chinuch Inc. v. Ortiz: NYLJ, 6/7/01, p. 20, col. 6 (App. T.1 Dept.; Parness, PJ, Davis, Gangel-Jacob, JJ)

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