Security Deposit, CO Detector Fees Can't Be Included in Settlement Agreement

April 1, 2006

LVT Number: 18770

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Landlord and tenant signed a settlement agreement in court. Tenant agreed to pay back rent, plus a security deposit of $785, and a fee of $25 for installation of a carbon monoxide detector. Tenant later asked the court to vacate the settlement agreement. The court ruled against tenant, and tenant appealed. Tenant said the settlement agreement was invalid because it included agreements to pay for items that weren't rent. The appeals court ruled for tenant. A security deposit isn't rent.

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Landlord and tenant signed a settlement agreement in court. Tenant agreed to pay back rent, plus a security deposit of $785, and a fee of $25 for installation of a carbon monoxide detector. Tenant later asked the court to vacate the settlement agreement. The court ruled against tenant, and tenant appealed. Tenant said the settlement agreement was invalid because it included agreements to pay for items that weren't rent. The appeals court ruled for tenant. A security deposit isn't rent. And, for a rent-stabilized tenant, the carbon monoxide detector fee can't be considered rent.

Graham Realty Assocs. LLC v. Peller: NYLJ, 3/17/06, p. 26, col. 6 (App. T. 2 Dept.; Pesce, PJ, Patterson, Rios, JJ)

Topics

More like this