Tenant Can't Vacate Settlement Agreement

March 20, 2014

LVT Number: #25368

Landlord sued to evict tenant and tenant's sister. Both sides were represented by attorneys and signed a settlement agreement in court. Tenant and her sister later asked the court to vacate the agreement, claiming that it was signed under undue pressure from the court during the settlement process. The court ruled against tenant, who appealed and lost. Stipulations of settlement are not lightly set aside. To prove legal duress, one must prove that a wrongful threat precluded the exercise of free will.

Landlord sued to evict tenant and tenant's sister. Both sides were represented by attorneys and signed a settlement agreement in court. Tenant and her sister later asked the court to vacate the agreement, claiming that it was signed under undue pressure from the court during the settlement process. The court ruled against tenant, who appealed and lost. Stipulations of settlement are not lightly set aside. To prove legal duress, one must prove that a wrongful threat precluded the exercise of free will. Tenant's general claim that she and her sister felt pressured by the court to settle was insufficient to establish duress. And tenant benefitted from the agreement, then waited more than a year before seeking to vacate it.

ACJ Associates LLC v. Kelly: 42 Misc.3d 138(A), 2014 NY Slip Op 50149(U) (App. T. 1 Dept.; 2/7/14; Lowe III, PJ, Schoenfeld, Shulman, JJ)

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