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Landlord & Tenant

By ljnstaff |
November 02, 2017

Retention of Tenant's Check in Lockbox
Scarborough Manor Owners Corp. v. Robson
NYLJ 9/11/17, p. 21, col. 4
AppTerm, 9th and 10th Districts
(memorandum opinion)

In co-op corporation's summary holdover proceeding against a proprietary lessee, the latter appealed from Justice Court's award of possession to landlord. The Appellate Term affirmed, holding that landlord had not waived its right to terminate by accepting rent from tenant.

Co-op corporation brought the holdover proceeding alleging that proprietary lessee had failed to maintain her unit in accordance with house rules and the provisions of the proprietary lease. At a nonjury trial, tenant moved to dismiss, alleging that landlord had accepted rent for the month after the co-op corporation's termination of the proprietary lease and before the co-op commenced the summary proceeding. Although the co-op board had instructed the managing agent not to accept rent from proprietary lessee, she nevertheless deposited a rent check into a bank lockbox. Proprietary lessee contended that the co-op had therefore accepted the rent and waived its right to terminate or, in the alternative, had accepted the rent and established a month-to-month tenancy, which would require landlord to serve a new 30-day notice. Justice Court rejected these arguments and entered a judgment of possession for the co-op corporation.

In affirming, the Appellate Term concluded that landlord had taken no action that constituted a knowing waiver of its right to terminate the lease. The court also held that because neither the co-op corporation nor its managing agent knew of proprietary lessee's deposit of the rent check, the co-op corporation had not accepted the rent check. As a result, no month-to-month tenancy had been established.

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