Tenant Can Continue Preferential Rent

Landlord sued to evict prior tenant, who was tenant's father. In that case, landlord signed a settlement agreement permitting tenant to take over the rent-stabilized lease. Landlord then offered tenant a lease at a preferential rent for one year. The preferential rent lease rider stated that the rent concession would continue for the duration of the tenancy. Tenant's first renewal lease calculated the preferential rent. But tenant's next three renewal leases made no reference to the preferential rent. In the meantime, tenant continued to pay, and landlord continued to accept, the preferential rent. Landlord then sued tenant, claiming that tenant owed back rent at the higher, rent-stabilized, rate. Tenant asked the court to dismiss the case without a trial. Tenant claimed that he was entitled to continue paying the preferential rent. Landlord claimed that the terms of the settlement agreement should prevail over the rent rider. The court ruled for tenant. There was nothing in the settlement agreement that was inconsistent with the preferential rent rider. The settlement agreement said that prior tenant would make no claims to the apartment, and that tenant, his wife, and children would be the sole occupants. In exchange, landlord agreed to give tenant a one-year rent-stabilized lease at a preferential rent. The terms of the lease covering the preferential rent said that "each successive renewal rent" would be calculated over the prior preferential rent.

Friendship Realty LLC v. Li: NYLJ, 4/8/08, p. 26, col. 1 (Civ. Ct. NY; Cohen, J)