Tenant Moved Out Too Late to Get Stipulated Buyout Payment

LVT Number: #31776

Landlord sued to evict tenant. The parties settled the case, and a court-ordered stipulation provided for entry of a final judgment of possession in landlord's favor, a stay on the execution of the eviction warrant until Oct. 31, 2018, and payment of a $17,000 buyout from landlord to tenant if tenant vacated by Oct. 31. The stipulation further stated that landlord must place the buyout amount in an escrow account within 48 hours and give tenant's attorney proof of the deposit. Later, a final judgment granting landlord possession only was entered on Oct.

Landlord sued to evict tenant. The parties settled the case, and a court-ordered stipulation provided for entry of a final judgment of possession in landlord's favor, a stay on the execution of the eviction warrant until Oct. 31, 2018, and payment of a $17,000 buyout from landlord to tenant if tenant vacated by Oct. 31. The stipulation further stated that landlord must place the buyout amount in an escrow account within 48 hours and give tenant's attorney proof of the deposit. Later, a final judgment granting landlord possession only was entered on Oct. 3, 2018, and tenant moved out in November 2018.

Meanwhile, tenant asked the court to vacate the settlement stipulation, claiming that landlord violated the agreement by failing to provide proof of its deposit of the buyout funds. The court granted tenant a money judgment for the $17,000. In May 2019, the court granted landlord's request to vacate the money judgment, finding that the court lacked jurisdiction to enter it.

Tenant appealed and lost. Even if the lower court had jurisdiction prior to termination of the proceeding to enforce a term of the stipulation requiring landlord to pay tenant, since a final judgment had been entered and tenant had vacated before the entry of the money judgment, the case had terminated and was no longer pending when the money judgment was entered. The court therefore lacked jurisdiction to enter the money judgment. And the court properly denied tenant's request to hold landlord in contempt. 

728 Fulton St., LLC v. Lashley: Index No. 2020-302KC, 2021 NY Slip Op 51173(U)(App. T. 2 Dept.; 12/3/21; Toussaint, JP, Weston, Elliot, JJ)