Tenant Breached Settlement Agreement

Landlord sued to evict tenant for nonpayment. Landlord and tenant signed a settlement agreement in court. Tenant agreed to pay back rent owed by December 2006 or else landlord could restore the case for entry of a judgment of possession, money judgment, and issuance of an eviction warrant. In April 2007, the court granted landlord's request for the judgment and warrant based on tenant's failure to pay or to appear in court to oppose landlord's request. In July 2007, tenant asked the court to vacate the agreement. The court ruled for tenant, finding that tenant's failure to pay was neither willful nor deliberate, but based on difficulty in obtaining the funds. The court gave tenant a chance to cure the default. Landlord appealed and won.
Tenant then appealed and lost. Tenant's inability to get funds owed under the settlement agreement wasn't a meritorious defense that could excuse tenant's default under the settlement agreement. The fact that landlord renewed tenant's rent-stabilized lease while tenant's appeal was pending didn't revoke the eviction warrant since landlord was legally obligated to renew the lease. Landlord didn't waive any right to seek eviction due to tenant's breach of the lease agreement to pay rent.

Chelsea Associates v. James: 67 A.D.3d 601, 2009 WL 4040791 (11/24/09) (App. Div. 1 Dept.; Friedman, JP, McGuire, Renwick, Richter, Manzanet-Daniels, JJ)