Settlement Agreement Vacated Due to Fraud

Facts: Landlord sued to evict tenant and his son based on nuisance created by the son. The court ruled for landlord, and tenant's appeal was denied. Landlord's new managing agent and new attorney sued to evict tenant for nonpayment of rent. Tenant's attorney told landlord's attorney that tenant had died and that his son was now the legal tenant. Tenant's attorney didn't tell landlord's attorney or the new managing agent about the prior eviction ruling. Landlord and tenant signed a settlement agreement in the nonpayment case. As part of that agreement, landlord agreed that the son was the legal tenant of the apartment. Landlord then discovered the mistake and asked the court to discontinue the nonpayment case and vacate the settlement agreement. The court and appeals court ruled against landlord. Landlord appealed again. Court: Landlord wins. Tenant's attorney, who had represented tenant and his son in both cases, knew the case history and committed a fraud on landlord's new attorney. The settlement agreement was vacated.

Sedgwick Avenue Assocs. v. Kehaya: NYLJ, p. 25, col. 5 (5/14/98) (App. Div. 1 Dept.; Milonas, JP, Rosenberger, Mazzarelli, Andrias, JJ)