Welfare Tenant Can't Raise Spiegel Defense Unless Agency Withheld Rent

Facts: Landlord sued to evict tenant for nonpayment of rent. Tenant raised a Spiegal Law defense, claiming that no rent was due because there were hazardous building violations. Tenant asked the court to delay the case until landlord submitted sufficient proof that certain violations had been corrected. The court ruled for tenant. Landlord appealed and won. Tenant appealed. The higher appeals court considered whether tenant could raise a Spiegel defense in a nonpayment case when the NYC Human Resources Administration pays a portion of tenant's rent directly to landlord but has taken no steps to withhold its share of the rent. Court: Tenant loses. Tenant can raise a Spiegel defense only when HRA or another social services agency has exercised its right to withhold direct rent payments to landlord based on code violations in the building.

Notre Dame Leasing LLC v. Rosario: NYLJ, 6/30/03, p. 18, col. 1 (App. Div. 2 Dept.; Ritter, JP, Florio, Krausman, Luciano, Mastro, JJ)