Drucker v. Mauro

30 A.D.3d 37, 814 N.Y.S.2d 43
CourtAppellate Division of the Supreme Court of the State of New York
DecidedApril 20, 2006
StatusPublished
Cited by45 cases

This text of 30 A.D.3d 37 (Drucker v. Mauro) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Drucker v. Mauro, 30 A.D.3d 37, 814 N.Y.S.2d 43 (N.Y. Ct. App. 2006).

Opinions

OPINION OF THE COURT

Tom, J.P.

At issue on this appeal is whether plaintiff tenants can enforce a lease and rider incorporating the terms of a stipulated settlement agreement that, while not in compliance with the provisions of the Rent Stabilization Law, is favorable to the tenants’ interests. In keeping with well-established precedent, this Court holds that an agreement in purported or actual settlement of a landlord-tenant dispute which waives the benefit of a statutory protection is unenforceable as a matter of public policy, even if it benefits the tenant.

In November 1981, plaintiffs John and Jacqueline Drucker entered into a rent-stabilized lease for apartment 2 at 432 East 58th Street in Manhattan. The lease was renewed on a number of occasions prior to defendant landlord’s acquisition of the building in 1991, at which time plaintiffs’ lease term was to expire on October 31, 1992. In January 1992, landlord filed an application with the Division of Housing and Community Renewal (DHCR) seeking a determination that the apartment was not subject to rent stabilization.

By statute, landlord was required to offer plaintiffs a renewal lease effective November 1, 1992 (Rent Stabilization Code [9 NYCRR] § 2523.5). Instead, plaintiffs assert, the parties entered into extensive negotiations with respect to “the rent regulated status of the building . . . repairs and renovations that had been made; and the right to certain personal property in the Apartment.” The parties reached a settlement of the disputed items, which agreement was incorporated into the rider to the lease commencing March 1, 1995. The rider provides for payment of rent at a rate ($1,700 a month) concededly exceeding the lawful regulated rent established for the premises ($1,529 a month). In February 1996, DHCR issued a determination declaring the premises subject to the Rent Stabilization Law. Thus, [39]*39the apartment was subject to the statute at the time the parties entered into the disputed lease and rider.

The 1995 lease rider also provides, inter alia, for automatic renewal, in perpetuity, for successive two-year terms with a rent increase equal to the percentage authorized by the New York City Rent Guidelines Board. The lease was last renewed in November 2000. In April 2002, landlord sent plaintiffs a DHCR income certification form because the rent exceeded $2,000 a month. Rather than respond, plaintiffs commenced this action seeking a declaration that they are not required to respond and that the parties are bound by the 1995 lease as well as a preliminary and permanent injunction barring landlord from seeking luxury deregulation of the apartment. When the preliminary injunction was denied, landlord sought and obtained a ruling from DHCR deregulating the apartment based on luxury decontrol.

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Cite This Page — Counsel Stack

Bluebook (online)
30 A.D.3d 37, 814 N.Y.S.2d 43, Counsel Stack Legal Research, https://law.counselstack.com/opinion/drucker-v-mauro-nyappdiv-2006.