Commencing Nonpayment Proceeding After Starting Holdover Case Reinstated Tenancy

Landlord sued to evict Section 8 tenant based on tenant’s breach of lease obligations by underreporting her income. Landlord and tenant signed a settlement agreement in court by which tenant agreed to repay the portion of the rent subsidy that she wasn’t entitled to. Landlord later claimed that tenant had defaulted on the payments. Tenant claimed that she had a reasonable excuse for the default and a meritorious defense. She argued that landlord waived the holdover proceeding by later suing to evict her for nonpayment of rent. The court ruled for tenant and dismissed the case. Landlord could have gone back to court in the holdover proceeding based on tenant’s default. By starting the nonpayment case while the holdover case was pending, landlord reaffirmed and reinstated the tenancy. The holdover case therefore must be dismissed.

Lindsay-Bushwick Assoc. v. Smith: Index No. 89837/14, NYLJ No. 1202741921117 (Civ. Ct. Kings; 10/26/15; Ressos, J)