Bankrupt Tenant Still Protected

January 1, 1998

LVT Number: 12046

Landlord sued to evict tenant for nonpayment of rent. Tenant later got a bankruptcy ruling in a separate court case. After being declared bankrupt, tenant rejected the rent-stabilized lease offered by landlord because acceptance of the lease was contingent on payment of attorney's fees determined in the nonpayment case. Landlord claimed that tenant had therefore lost the right to remain in the apartment as rent-stabilized tenant and sued to eject tenant. The court ruled against landlord. Rejection of the lease was a statutory breach and didn't affect tenant's rent stabilization rights.

Landlord sued to evict tenant for nonpayment of rent. Tenant later got a bankruptcy ruling in a separate court case. After being declared bankrupt, tenant rejected the rent-stabilized lease offered by landlord because acceptance of the lease was contingent on payment of attorney's fees determined in the nonpayment case. Landlord claimed that tenant had therefore lost the right to remain in the apartment as rent-stabilized tenant and sued to eject tenant. The court ruled against landlord. Rejection of the lease was a statutory breach and didn't affect tenant's rent stabilization rights. Generally, landlord wouldn't get judgment of possession based on tenant's inability to pay attorney's fees.

Supreme Co. v. Creed: NYLJ, p. 21, col. 4 (12/31/97) (Sup. Ct. NY; Schlesinger, J)

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