Fees in Escrow Released to Tenant Instead of Attorney

LVT Number: 12794

Landlord sued to evict tenant. The case was settled, and landlord paid tenant $10,000, which had been held in an escrow account by landlord's attorney. Tenant's attorney appealed. The settlement agreement between landlord and tenant called for payment of the escrow money to tenant's attorney. Tenant's attorney was entitled to a portion of this money as attorney's fees. The appeals court ruled for tenant's attorney. The case was sent back to the lower court for a finding on the amount of the fees due to tenant's attorney and a judgment against both landlord and tenant.

Landlord sued to evict tenant. The case was settled, and landlord paid tenant $10,000, which had been held in an escrow account by landlord's attorney. Tenant's attorney appealed. The settlement agreement between landlord and tenant called for payment of the escrow money to tenant's attorney. Tenant's attorney was entitled to a portion of this money as attorney's fees. The appeals court ruled for tenant's attorney. The case was sent back to the lower court for a finding on the amount of the fees due to tenant's attorney and a judgment against both landlord and tenant.

220 East 22nd Street Assocs. v. Scotto: NYLJ, p. 21, col. 2 (11/6198) (App. T. 1 Dept.; Freedman, JP, Davis, Gonzalez, ii)