Settlement Agreement for Deregulated Lease Violated Code

July 31, 2008

LVT Number: #20582

Landlord sued to evict rent-stabilized tenant for unauthorized subletting. Tenant gave up the apartment, and landlord signed a settlement agreement with subtenant. Subtenant agreed to accept an unregulated lease at a rent that was greater than the legal rent-stabilized rent. Subtenant later sued landlord in State Supreme Court, claiming that the agreement was invalid. Landlord claimed that subtenant must go back to housing court with any claim about the settlement agreement that was signed there. The court ruled for landlord and tenant appealed.

Landlord sued to evict rent-stabilized tenant for unauthorized subletting. Tenant gave up the apartment, and landlord signed a settlement agreement with subtenant. Subtenant agreed to accept an unregulated lease at a rent that was greater than the legal rent-stabilized rent. Subtenant later sued landlord in State Supreme Court, claiming that the agreement was invalid. Landlord claimed that subtenant must go back to housing court with any claim about the settlement agreement that was signed there. The court ruled for landlord and tenant appealed. New York's highest court reversed and ruled for tenant. The settlement agreement violated the Rent Stabilization Code and was void as against public policy. Tenant wasn't required to proceed in housing court in this case.

Sokolski v. LeCrichia: NYLJ, 7/2/08, p. 29, col. 3 (Ct. App.; Kaye, CJ, Ciparick, Graffeo, Read, Smith, Pigott, Jones, JJ)

Topics

More like this