Tenants Association Must Turn Rent over to Landlord

LVT Number: 16593

Landlord sued tenants association for a turnover of rent collected by the association under a court-ordered settlement agreement in prior court cases. Tenants objected, claiming breach of the warranty of habitability. The court ruled for land- lord and ordered tenants to turn over $76,000. Tenants appealed and lost. Landlord wasn't suing for eviction, so the breach of warranty claim was properly severed by the lower court.

Landlord sued tenants association for a turnover of rent collected by the association under a court-ordered settlement agreement in prior court cases. Tenants objected, claiming breach of the warranty of habitability. The court ruled for land- lord and ordered tenants to turn over $76,000. Tenants appealed and lost. Landlord wasn't suing for eviction, so the breach of warranty claim was properly severed by the lower court. In addition, for the period that landlord claimed unpaid rent, a court-ordered settlement agreement was in effect that gave tenants a 50 percent rent abatement and gave the association the right to collect the other 50 percent until landlord completed certain repairs. Money that tenants spent for additional repairs was already deducted by the lower court in determining the amount owed landlord. Tenants also didn't present sufficient proof of additional breaches of the warranty of habitability after those that they already received an abatement for.

R.V.R. Realty LLC v. Tenants Alliance: NYLJ, 5/27/03, p. 19, col. 3 (App. Div. 1 Dept.; Nardelli, JP, Sullivan, Rosenberger, Wallach, Gonzalez, JJ)