Unsigned Settlement Agreement Enforceable

Landlord sued to evict rent-stabilized tenant for owner occupancy. After settlement negotiations, landlord refused to sign a stipulation of settlement. Tenant asked the court to enforce the settlement agreement and to hold a hearing for attorney’s fees. The court ruled against tenant, who appealed and won.

Emails exchanged between attorneys for both sides outlined the essential terms of a settlement agreement and indicated that a stipulation would follow. A later email exchange between the attorneys set forth the agreement regarding the language of the written stipulation. Landlord’s attorney then sent the settlement stipulation to tenant’s attorney. Both tenant and tenant’s attorney signed the stipulation, and tenant’s attorney also executed a stipulation discontinuing a prior housing court proceeding started by tenant. Both stipulations were returned to landlord’s attorney. Landlord and its attorney never signed the stipulations and later attempted to revoke the agreement. But the record showed that both sides intended to be bound by the agreement and it was therefore enforceable. Neither the written stipulation nor the parties’ email exchange indicated an intent not to be bound until an agreement was executed by both sides. Landlord’s attorney had actual authority to settle the case and apparent authority to bind landlord to the agreement. Tenant was entitled to attorney’s fees for landlord’s breach of the settlement agreement.

Tauber v. Haecker: 49 Misc.3d 135(A), 2015 NY Slip Op 51485(U) (App. T. 1 Dept.; 10/7/15; Shulman, JP, Hunter Jr., Ling-Cohan, JJ)