Tenant Didn't Become Stabilized Until He Signed Stipulation

Facts: Prior to 1987, tenant was rent-controlled and paid $85 per month rent. In 1987, HPD restructured the building rents and set an initial stabilized rent for tenant's apartment at $425 per month. Tenant refused to sign the rent-stabilized lease and contested the new rent. Tenant continued to pay $85 per month. In 1994 tenant agreed in a court stipulation to accept the rent-stabilized lease and to pay higher rent. Landlord then sued to evict tenant for nonpayment of rent. Landlord claimed that tenant owed the difference between the old rent and the rent-stabilized rent for the years between 1987 and 1994. Landlord also sought unpaid rent for periods after 1994. The court ruled for landlord, and tenant appealed. Court: Tenant wins in part. Tenant wasn't required to pay rent-stabilized rent for the period before she signed the rent-stabilized lease. Tenant didn't become subject to stabilization until then. Landlord was entitled to judgment for back rent only since 1994, after tenant signed the lease.

Pald Enterprises v. Gonzalez: NYLJ, p. 31, col. 1 (6/12/97) (App. T. 2 Dept.; Kassoff, PJ, Scholnick, Chetta, JJ)