Landlord & Tenant

In landlord's action against residential tenant for breach of a residential lease, landlord appealed from Supreme Court's denial of its motion to set aside part of the court's verdict after a bench trial. The Appellate Division affirmed, holding that the lease's rent-acceleration clause constituted an unenforceable penalty.

The residential apartment lease between landlord and tenant included a clause that accelerated tenant's rent obligation in case of breach by the tenant. When tenant breached, landlord relet the premises and brought this action against tenant for breach. Supreme Court awarded landlord $9,224.41 in rent, plus attorneys' fees, litigation cost and prejudgment interest, but directed subtraction of amounts landlord collects from the new tenant during the period of the original lease term. Landlord then moved to set aside the portion of the verdict calling for an offset of rent collected from the new tenant. Supreme Court denied the motion and, when landlord failed to submit a post-trial affidavit detailing income it had collected from the new tenant, determined that landlord had failed to prove damages and was therefore not entitled to a money judgment against tenant. Landlord appealed.