Settlement Agreement Contained Misrepresentations

Facts: In 1996, landlord and illegal loft tenants disagreed on whether tenants were rent stabilized. Landlord and tenants signed a settlement agreement in court, stating that the building wasn't rent stabilized because it was substantially rehabilitated after Jan. 1, 1974. Landlord agreed that tenants could remain in possession until June 2006. Tenants later asked the court to vacate the settlement agreement. They said that the building wasn't rehabilitated after Jan. 1, 1974. Court: The court ruled for tenants. Landlord intentionally misrepresented the facts, which was fraud on the court. Although both sides were represented by attorneys, and tenants had obtained a benefit from the settlement agreement, the settlement agreement and judgment must be set aside.

Century Realty Inc. v. Hyatt: NYLJ, 7/19/06, p. 22, col. 1 (Sup. Ct. NY; Lehner, J)