TENANT EVICTED FOR NOT HONORING PAYMENT OBLIGATIONS
In a commercial landlord-tenant dispute in New York County Civil Court between 255 A* LLC (the landlord) and W* B* S* Inc. (the tenant), the latter allegedly failed to meet its rent obligations.
In March 2024, within the context of the nonpayment proceeding, both parties entered into a stipulation settling the case, where the tenant acknowledged owing over $222,000 in rent and additional charges. As part of the agreement, the landlord conditionally waived over half of these arrears, leaving a final judgment of nearly $119,000. The stipulation also allowed the immediate issuance of an eviction warrant, with execution temporarily stayed—on the condition that the tenant adhered to a strict payment schedule, including current rent and additional charges as they became due.
However, the tenant failed to make timely payments, violating the stipulation’s terms. As a result, the landlord proceeded with eviction and the recovery of previously waived arrears. The tenant attempted to halt the eviction and restore the case to the court’s calendar, but the Civil Court denied the motion on May 28, 2024. This decision was upheld by the Appellate Term, First Department, which reinforced the consequences of the stipulation as negotiated by experienced parties represented by legal counsel.
The AT1 emphasized that the terms of the settlement were clear and fair, and that enforcement was justified given the tenant’s repeated failures to comply with payment obligations. The court determined that the tenant's breach was neither accidental nor minor and ultimately affirmed the outcome, with the tenant responsible for additional legal costs.
That settles that.
# # #
DECISION