Tenant Can Reopen Settlement with Rent Overcharge Claim

Landlord sued to evict tenant for nonpayment of rent. Tenant was evicted, and soon asked the court to be restored to the apartment. Landlord and tenant then signed a settlement agreement in court. Landlord relocated tenant to another rent-stabilized apartment at a monthly preferential rent of $850. Six months later, tenant went back to court, claiming that she was being overcharged. Landlord claimed that tenant waited to long to complain and that the rent was legal. The court ruled for tenant. CPLR Section 5015(a)(3) allowed tenant to seek relief from an order or judgment due to fraud, misrepresentation, or other misconduct within a reasonable time. Since there was a question as to whether tenant’s preferential rent was more than the legal regulated rent, the court would consider tenant’s overcharge claim despite the prior settlement agreement.

Janel Towers LLC v. Durham: NYLJ, 3/3/10, p. 26, col. 1 (Civ. Ct. NY; Lehrer, J)