The recent decision in Liggett v. Lewitt Realty LLC, rendered by the Court of Appeals in June 2024, has significant implications for longstanding stipulations of settlement and the drafting of future agreements within the scope of the Rent Stabilization Law. The court held that a so-ordered stipulation of settlement entered into more than two decades ago between a landlord and a future tenant was void as against public policy. This stipulation was originally part of a settlement to a 2000 holdover proceeding, but could not be used in a 2021 action to justify the deregulation of the apartment from rent stabilization.
The dispute revolved around an apartment initially subject to rent control. After the death of the rent-controlled tenant in 1998, a legal battle ensued over succession rights to the tenancy and the apartment’s subsequent regulatory status. The case underscores the critical role of stipulations in property law and their compliance with public policy to maintain rent stabilization protections. The Court’s ruling reinforces the necessity for legal professionals to scrutinize and carefully draft settlements related to tenancy and rent regulation disputes. For a detailed account, visit the original article on Law.com.