Tenant Can Raise Overcharge Claim After Signing Settlement

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Landlord and tenant signed a settlement agreement in court. Landlord got a judgment of possession and an eviction warrant was issued. Tenant was given time to pay back rent owed to avoid eviction. Tenant later asked the court to vacate the settlement agreement and permit him to amend his answer. Tenant now claimed a rent overcharge. The court ruled for tenant. Tenant now had an attorney and had learned that he may be overcharged. Landlord claimed that it made individual apartment improvements before tenant moved in. But landlord didn’t prove the 1/40^th improvement costs in opposing tenant’s request. Since the settlement agreement required tenant to pay what may be more than the legal rent, it was vacated.

Kings & Queens Holdings LLC v. Smith: NYLJ, 2/3/10, p. 28, col. 1 (Civ. Ct. Queens; Leverett, J)