Tenant Can Vacate Settlement Stipulation

April 1, 1994

LVT Number: 8682

Landlord sued to evict tenant for nonpayment of rent. Landlord and tenant signed a stipulation of settlement in court in which tenant agreed to pay back rent. Tenant later asked the court to vacate the stipulation. The court ruled for tenant, and landlord appealed. The appeals court ruled against landlord. Tenant showed good cause to vacate the stipulation. Shortly after the stipulation was signed, the DHCR's DRA issued an order finding a rent overcharge. The amount of the rent overcharge far exceeded any back rent owed by tenant.

Landlord sued to evict tenant for nonpayment of rent. Landlord and tenant signed a stipulation of settlement in court in which tenant agreed to pay back rent. Tenant later asked the court to vacate the stipulation. The court ruled for tenant, and landlord appealed. The appeals court ruled against landlord. Tenant showed good cause to vacate the stipulation. Shortly after the stipulation was signed, the DHCR's DRA issued an order finding a rent overcharge. The amount of the rent overcharge far exceeded any back rent owed by tenant. The stipulation specifically stated tenant's right to claim rent overcharge as an affirmative defense in light of the DHCR proceeding. And landlord didn't show that he filed any PAR against the DRA's order.

Levy v. Ross: NYLJ, p. 29, col. 6 (3/21/94) (App. T. 1 Dept.; Parness, JP, McCooe, Glen, JJ)

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