Trial Required on Effect of Settlement Agreement

Facts: In 1986, landlord sued to evict rent-controlled tenant for nonprimary residence. Landlord and tenant signed a settlement agreement. Under its terms, landlord rented tenant another apartment with the right to renew for 12 one-year terms. The new apartment could be occupied by tenant or other people chosen by tenant. Landlord and tenant also agreed that the new apartment wasn't subject to rent control or rent stabilization, and tenant wouldn't claim such status in the future. After the 12 years were up, landlord sued to evict tenant. Tenant claimed that landlord agreed that his tenancy would be governed by the terms of the Rent Stabilization Law. In 1997, landlord had given tenant a rent-stabilized renewal lease form and rider. Tenant then paid the same rent for six years. Tenant asked the court to dismiss the case without a trial. The court ruled against tenant, and tenant appealed. Court: Tenant loses. Coverage under rent stabilization is a matter of statutory right and can't be created by waiver. A trial was needed to determine whether there was an agreement to give tenant rent-stabilized status or benefits in 1997 that changed the 1986 settlement agreement.

12-62 Realty Corp. v. Scapula: NYLJ, 3/8/04, p. 25, col. 2 (App. T. 1 Dept.; McCooe, JP, Davis, Schoenfeld, JJ)