Landlord Can't Cure Error in Nonpayment Settlement Agreement

January 1, 2007

LVT Number: 19362

Landlord sued to evict tenant for nonpayment of rent. Landlord claimed that tenant owed $554 per month for six months. Landlord and tenant signed a settlement agreement in court, and tenant agreed to pay the amount that landlord had claimed was due in the court papers. Landlord later asked the court to set aside the settlement agreement, claiming a mutual mistake. Tenant's rent had been reduced to $554 per month by a DHCR rent reduction order. But in April 2002, the DHCR issued an order restoring tenant's rent to a higher amount. The court ruled against landlord.

Landlord sued to evict tenant for nonpayment of rent. Landlord claimed that tenant owed $554 per month for six months. Landlord and tenant signed a settlement agreement in court, and tenant agreed to pay the amount that landlord had claimed was due in the court papers. Landlord later asked the court to set aside the settlement agreement, claiming a mutual mistake. Tenant's rent had been reduced to $554 per month by a DHCR rent reduction order. But in April 2002, the DHCR issued an order restoring tenant's rent to a higher amount. The court ruled against landlord. Landlord appealed and lost. Landlord signed the settlement agreement in December 2003. By that time, landlord should have known about the DHCR rent restoration order. The court would not set aside the settlement agreement based on landlord's negligence or carelessness, and there was no proof of fraud or deceit on tenant's part.

Waterside 1 LLC v. Christian: NYLJ, 12/7/06, p. 33, col. 1 (App. T. 2 Dept.; Pesce, PJ, Golia, Rios, JJ)

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