Prior Agreement Bars Landlord from Second Claim for Back Rent

April 9, 2007

LVT Number: 19438

Facts: Tenants bought their apartment in 1993 when building was converted to a low-income, nonprofit cooperative. Tenants also received maintenance subsidies from the Section 8 program. In 2003, landlord cooperative sued to evict tenants for nonpayment of maintenance. Landlord and tenants signed a settlement agreement in court. Tenant agreed to pay $1,500, and landlord agreed to seek the other $20,000 owed from the HPD under Section 8. Tenants paid the $1,500. In 2004, landlord sent tenants a notice of a lien and foreclosure sale on their apartment to cover $18,000 still owed.

Facts: Tenants bought their apartment in 1993 when building was converted to a low-income, nonprofit cooperative. Tenants also received maintenance subsidies from the Section 8 program. In 2003, landlord cooperative sued to evict tenants for nonpayment of maintenance. Landlord and tenants signed a settlement agreement in court. Tenant agreed to pay $1,500, and landlord agreed to seek the other $20,000 owed from the HPD under Section 8. Tenants paid the $1,500. In 2004, landlord sent tenants a notice of a lien and foreclosure sale on their apartment to cover $18,000 still owed. Tenants asked the court to dismiss the notice. Court: Tenants win. The settlement agreement in the prior nonpayment proceeding ended tenants' obligation to pay the money that landlord agreed to seek from the HPD. Landlord couldn't bring a different action to try to collect the same money it previously agreed that tenants didn't have to pay.

Ebanks v. 547 W. 147th St. HDFC: NYLJ, 2/22/07, p. 27, col. 2 (App. Div. 1 Dept.; Tom, JP, Saxe, Friedman, Sullivan, McGuire, JJ)

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