Mitchell Lama Tenants Can't Vacate Settlement Agreement

LVT Number: 18762

Tenants sued landlord, seeking to vacate a prior settlement agreement. Landlord had operated the building under the Mitchell-Lama program. After landlord's application to withdraw from the Mitchell-Lama program was granted, landlord signed settlement agreements with various tenants. Complaining tenants claimed misrepresentation, fraud, and duress. The court and appeals court ruled against tenants. Tenants accepted the settlement agreement, by which they entered into new lease arrangements with the building.

Tenants sued landlord, seeking to vacate a prior settlement agreement. Landlord had operated the building under the Mitchell-Lama program. After landlord's application to withdraw from the Mitchell-Lama program was granted, landlord signed settlement agreements with various tenants. Complaining tenants claimed misrepresentation, fraud, and duress. The court and appeals court ruled against tenants. Tenants accepted the settlement agreement, by which they entered into new lease arrangements with the building. Tenants were given ample opportunity by the court to get legal advice before signing the settlement agreement. Neither landlord nor its agents misrepresented tenants' need to sign new leases. And tenants accepted the benefits of a transitional lease at Mitchell-Lama rent rates. Tenants also waited for some time before seeking to vacate the settlement agreement.

Mendel v. Henry Phipps Plaza West, Inc.: NYLJ, 3/30/06, p. 27, col. 2 (App. Div. 1 Dept.; Saxe, JP, Nardelli, Sweeny, McGuire, Malone, JJ)