Stipulation Didn't Convert Occupant into Rent Stabilized Tenant

Facts: Landlord sued to evict rent-stabilized tenant for illegally subletting his apartment. The court ruled for landlord in May 1992; an eviction warrant was issued on June 3, 1992. Tenant again sublet the apartment at the beginning of June but didn't tell new subtenant that his tenancy had already been terminated. Subtenant contacted landlord when she got eviction notices. Landlord sent subtenant an agreement by which subtenant consented to the eviction judgment. The agreement also delayed execution of the eviction. Subtenant was represented by an attorney. Landlord then sued to evict subtenant as a licensee. The court ruled for landlord, and an eviction warrant was issued in September 1992. However, subtenant remained in the apartment and received rent increases. Landlord also named subtenant as tenant of the apartment in the annual DHCR rent registration. Subtenant complained to the DHCR that she wasn't offered a lease. Landlord then served a notice to quit demanding that subtenant move by Feb. 1, 1994. In response, subtenant claimed that a landlord-tenant relationship had been created and that she was entitled to remain in the apartment. The court ruled against subtenant, and she appealed. Court: Subtenant loses. Subtenant agreed in the 1992 stipulation to move out upon 90-days' notice. The stipulation was valid; subtenant wasn't authorized to stay in apartment and had no independent right to possession or succession rights. Neither the stipulation nor the payment of use and occupancy created a rent-stabilized tenancy.

Hollyer v. Leacock: NYLJ, p. 25, col. 1 (7/21/95) (App. T. 1 Dept.; Miller, JP, McCooe, Glen, JJ)