Landlord Thwarted Tenant's Rent Payment from Lawful Source

Landlord sued to evict tenant for nonpayment of rent. Landlord and tenant signed a settlement agreement in court, giving landlord a judgment of possession and money judgment of $4,900. Tenant could avoid eviction by paying the back rent owed. Tenant made one partial payment when she signed the agreement. Tenant later asked the court to vacate the eviction warrant. Catholic Charities had agreed to pay the balance due for tenant but required landlord to complete a W-9 tax form to do so. Landlord claimed that it wasn't required to complete the form and opposed tenant's request. The court ruled for tenant, finding that landlord had breached the implied covenant of good faith and fair dealing and had frustrated tenant's efforts to comply with the settlement agreement.

Landlord appealed and lost. Tenant showed good cause to vacate the warrant, although the appeals court based this decision on a different reason. New York City policy prevents unlawful discrimination against tenants based on any lawful source of income. The funds needed for tenant to pay the back rent were available from a lawful source of income, and landlord refused without explanation to complete the form needed to release the funds. 

Dino Realty Corporation v. Khan: 2014 NY Slip Op 24401, 2014 WL 7263904 (App. T. 2 Dept.; 12/11/14; Aliotta, JP, Pesce, Solomon, JJ)