1250 Broadway, 27th Floor New York, NY 10001

SHOULD TENANT LOSE APARTMENT OVER $504

In BNS Buildings, LLC v. Morgan , Gary Morgan, who had resided in a rent-stabilized apartment for some 28 years, settled a nonpayment case by consenting to a money judgment in the amount of $504 together with a judgment of possession in the event the monies weren't paid by a date certain.

The agreement required BNS to make certain repairs to the apartment, but a dispute arose regarding those repairs, and a series of court appearances ensued. During that period of time, BNS declined payments made by the Department of Social Services (DSS) on the tenant's behalf, claiming that the rent then due exceeded what was being tendered.

The Kings County Civil Court determined that DSS and Morgan should each "pay a portion of the rent then agreed by the parties to be due, and that the warrant was again to be stayed pending such payment."  When BNS appealed, the Appellate Term, Second Department, was equally sympathetic to Morgan's predicament.

Since Morgan was possibly entitled to an abatement because of violations and other conditions extant, was prepared to pay the amount the court found to be due, and, BNS had refused to accept a check from DSS for the $504, the AT2 found that the lower court properly exercised its discretion staying the execution of the warrant of eviction since the law abhors the forfeiture of "long-standing" regulated tenancies.

A lone dissenter concluded that Morgan had failed to substantially comply with the stipulated terms of the parties' settlement and had allowed the case to "deteriorate into a pattern of repeated requests for relief" wherein Morgan violated a number of court orders.

By the time DSS stepped into the picture with the $504, additional rent payments had become due and were required to be made. As a result of Morgan's inability or refusal to honor his contractual obligations, the dissenter was of the opinion that "good cause" had not been shown for any additional delay and that by failing to stem this kind of abuse "the majority effectively dissuades landlords from ever entering into a stipulation with a tenant."

Got a dissent to that?

For a copy of the Appellate Term's decision, please use this link: BNS Buildings, LLC v. Morgan

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