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New Tenant Friendly Ruling Worries Landlord Attorneys

A recent case has raised some eyebrows and cause landlord attorneys much caution in New York.

An 82-year-old man was threatened last year with eviction from the rent-controlled apartment in Upper Manhattan for 48 years because of a clerical error.  Really?

The man went to court seeking damages for the anxiety he claimed he suffered. A federal judge ruled in his favor which is worrying landlord attorneys.

The tenant reached a $22,000 settlement and $108,000 in attorney’s fees after the judge ruled that he was the prevailing party. The interesting thing is the landlord was not responsible, but the landlord’s were.

U.S. District Court Judge Lorna G. Schofield held that the law firm for the landlord was liable for damages for the error, even though the firm had relied on incorrect business records from the landlord's property manager.

The decision was based strict federal law intended to eliminate abuses by collection companies.  As a result, some attorneys say they are reviewing eviction procedures to find ways to protect against liability in similar suits.

The federal Fair Debt Collection Practices Act, a law designed to stop abuses by debt collection companies and holds them strictly accountable for errors at issue. The law has exceptions such as unintentional mistakes resulting from a "bona fide errors.”

http://online.wsj.com/news/articles/SB10001424127887323608504579022850361952282

Know Your Rights

California unlawful detainer law provides certain rights for both tenants and property owners.