Tenant Can't Vacate Default Judgment

Landlord sued to evict tenant for nonpayment of rent. Landlord and tenant signed a settlement agreement, giving tenant time to pay. They agreed that if tenant didn't pay by Dec. 31, 2006, landlord could ask the court for a judgment and eviction warrant. Tenant failed to make payment, and landlord made its motion for the judgment and warrant. The court ruled for landlord based on tenant's failure to appear in court. Tenant later asked the court to vacate the judgment and warrant. The court ruled for tenant, finding that his delay in payment wasn't willful or deliberate but merely the result of difficulty in obtaining funds.
Landlord appealed and won. The appeals court found that tenant offered neither an excuse for his default nor a meritorious defense to the terms of the settlement agreement. Tenant then appealed and lost. The higher appeals court ruled that the settlement agreement should be enforced. There was no fraud, overreaching, unconscionability, or illegality. Landlord also didn't waive the eviction warrant by renewing tenant's rent-stabilized lease while the appeal was pending, since it was legally obligated to do so under the Rent Stabilization Code.

Chelsea 19 Associates v. James: NYLJ, 11/30/09, p. 26, col. 5 (App. Div. 1 Dept.; Friedman, JP, McGuire, Renwick, Richter, Manzanet-Daniels, JJ)