Tenant Who Breaks Illegal Lease Gets Security Deposit Refund

July 31, 2009

LVT Number: #22104

Landlord sued former tenant in small claims court for four months' rent after tenant moved out before the lease term was over. Tenant in turn sought return of her $3,900 security deposit. The court found that since the apartment was occupied by new tenant for the last two months of the term, tenant wasn't responsible for this rent. And tenant was entitled to move out after she learned that her lease was illegal and the building didn't conform to its Certificate of Occupancy. The court ordered landlord to return tenant's security deposit. Landlord appealed and lost.

Landlord sued former tenant in small claims court for four months' rent after tenant moved out before the lease term was over. Tenant in turn sought return of her $3,900 security deposit. The court found that since the apartment was occupied by new tenant for the last two months of the term, tenant wasn't responsible for this rent. And tenant was entitled to move out after she learned that her lease was illegal and the building didn't conform to its Certificate of Occupancy. The court ordered landlord to return tenant's security deposit. Landlord appealed and lost. Tenant was within her rights to cancel the lease and move out of the illegal apartment.

Sethi v. Naman: NYLJ, 7/22/09, p. 37, col. 4 (App. T. 2 Dept.; Rudolph, PJ, Molia, Nicolai, JJ)

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