Tenant Gets Attorney's Fees Under RPL Section 234

Landlord sued to evict tenant for breaching his lease by failing to obtain prior written consent before installing a new electrical system in his apartment kitchen. Tenant claimed retaliatory eviction because he had just won a DHCR rent overcharge ruling. The housing court ruled against landlord, finding that landlord's agents had authorized tenant's electrical work. The court awarded tenant attorney's fees. Both sides appealed, and the Appellate Term revoked the attorney's fees.

Tenant then appealed, and the Appellate Division ruled for tenant. That court found that because tenant's lease permitted landlord to recover attorney's fees if tenant failed to perform an agreement contained in the lease, tenant had a reciprocal right to fees under Real Property Law (RPL) Section 234 when landlord lost the case. But dissenting judges stated that RPL Section 234 should be strictly construed and couldn't be extended to apply to tenant's lease because the lease merely allowed for an offset of rents collected when landlord re-rented the apartment if tenant was evicted.

The case then went up to New York's highest court, which ruled for tenant. Tenant's lease anticipated that after a tenant default leads to the re-letting of the apartment, landlord was entitled to collect attorney's fees incurred in gaining possession. This provision qualified for reciprocal coverage under RPL Section 234. Tenant was entitled to attorney's fees.

Graham Court Owner's Corp. v. Taylor: 2015 NY Slip Op 01482, 2015 WL 685732 (Ct. App. NY; 2/19/15; Rivera, J)