Lease Clause Requiring Automatic Debit Payments Unenforceable

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Landlord and tenant signed a settlement agreement in court. Tenant later sought more time to pay back rent owed under the agreement. Landlord objected and asked for a money judgment for all sums owed. While finding some of tenant's lease terms unenforceable, the court ruled that landlord was entitled to a money judgment of $3,500. Tenant's lease provided for a "discounted" rent, which the court found was a de facto preferential rent. A lease rider divesting tenant of her rights under rent stabilization was unenforceable, as was a provision requiring automatic debit payments as a substantial obligation of the lease.  

Jamaica Seven LLC v. Jean: Index No. L&T85240/2013, NYLJ No. 1202663259524 (Civ. Ct. Queens; 6/27/14; Badillo, J)