Assembly Bill A10166

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  10166

                          I N  A S S E M B L Y

                              June 18, 2014
                               ___________

Introduced  by  COMMITTEE  ON  RULES -- (at request of M. of A. Farrell,
  Wright) -- read once and referred to the Committee on Judiciary

AN ACT to amend the real property law, in relation  to  attorneys'  fees
  and expenses in landlord-tenant disputes

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 234 of the real property law, as amended by chapter
297 of the laws of 1969, is amended to read as follows:
  S 234. Tenants' right to recover attorneys' fees in actions or summary
proceedings arising out of leases of residential property. 1. (A)  When-
ever a lease of residential property shall provide that in any action or
summary  proceeding  the  landlord  may  recover  attorneys' fees and/or
expenses incurred as the result of the failure of the tenant to  perform
any  covenant or agreement contained in such lease, or that amounts paid
by the landlord therefor shall be paid by the tenant as additional rent,
there shall be implied in such lease a covenant by the landlord  to  pay
to the tenant the reasonable attorneys' fees and/or expenses incurred by
the  tenant  as the result of the failure of the landlord to perform any
covenant or agreement on its part to be performed under the lease or  in
the  successful defense of any action or summary proceeding commenced by
the landlord against the tenant arising out of the lease, and an  agree-
ment  that such fees and expenses may be recovered as provided by law in
an action commenced against the landlord or by way  of  counterclaim  in
any  action  or summary proceeding commenced by the landlord against the
tenant. Any waiver of  this  [section]  SUBDIVISION  shall  be  void  as
against public policy.
  (B) THE COURT SHALL, IN ITS DISCRETION, ORDER THE LANDLORD TO PAY SUCH
ATTORNEY'S  FEES  OR EXPENSES, OR BOTH, THAT ARE ACTUALLY AND REASONABLY
INCURRED BY A TENANT WHO IS THE SUCCESSFUL  PARTY  IN  SUCH  ACTIONS  OR
PROCEEDINGS  TO  THE  SAME  EXTENT  THE  LANDLORD IS ENTITLED TO RECOVER
ATTORNEY'S FEES AND EXPENSES, OR BOTH, AS PROVIDED  IN  THE  LEASE.  THE
COURT SHALL HAVE DISCRETION WITH RESPECT TO AWARDS OF ATTORNEY'S FEES OR
EXPENSES, OR BOTH, FOR TENANTS TO THE SAME DEGREE AS IT HAS WITH RESPECT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15639-01-4
              

A. 10166                            2

TO  AWARDS  OF  ATTORNEY'S  FEES  OR EXPENSES, OR BOTH, FOR LANDLORDS AS
PROVIDED UNDER THE LEASE EITHER EXPLICITLY OR IMPLICITLY.
  (C) AN ORDER BASED ON THIS IMPLIED COVENANT SHALL REQUIRE THE LANDLORD
TO PAY THE TENANT SUCH COSTS EITHER AS MONEY DAMAGES OR A CREDIT AGAINST
FUTURE RENT, AS DETERMINED BY THE TENANT. NOTWITHSTANDING THE FOREGOING,
IN  AN ACTION OR SUMMARY PROCEEDING FOR NON-PAYMENT OF RENT A TENANT WHO
PAYS ALL RENT CURRENTLY DUE AND OWING ON OR  AFTER  THE  FILING  OF  THE
COMPLAINT  BUT  PRIOR  TO  ENTRY OF A FINAL JUDGMENT, AND WHOM THE COURT
FINDS PRESENTED NO MERITORIOUS DEFENSE TO THE COMPLAINT OTHER THAN  SAID
PAYMENT,  SHALL  NOT BE DEEMED TO HAVE SUCCESSFULLY DEFENDED AGAINST THE
ACTION OR SUMMARY PROCEEDING FOR THE PURPOSES OF THE AWARD OF ATTORNEY'S
FEES OR EXPENSES, OR BOTH.
  AS USED IN THIS SECTION "EXPENSES"  SHALL  INCLUDE  EXPENSES  DIRECTLY
RELATED TO THE LITIGATION INCLUDING, BUT NOT LIMITED TO, COURT COSTS AND
EXPENSES  FOR WITNESSES.  "EXPENSES" SHALL NOT INCLUDE PERSONAL EXPENSES
FOR TRAVEL, REIMBURSEMENT FOR MISSED WORK TIME, OR CHILD CARE.
  2. IF A RESIDENTIAL LEASE AGREEMENT PROVIDES THAT THE LANDLORD  IS  OR
MAY  BE  ENTITLED  TO RECOVER ATTORNEY'S FEES OR EXPENSES, OR BOTH, FROM
THE TENANT FOR ANY ACTION OR  SUMMARY  PROCEEDING  ARISING  OUT  OF  THE
LEASE,  THE LEASE CLAUSE SHALL ALSO CONTAIN THE FOLLOWING PROVISION IN A
BOLD TYPEFACE IN A FONT SIZE NO LESS THAN  ONE  POINT  LARGER  THAN  THE
POINT  SIZE  OF  THE REST OF THE LEASE CLAUSE OR 11 POINTS, WHICHEVER IS
LARGER:
  IF THE TENANT IS SUCCESSFUL IN ANY ACTION OR SUMMARY PROCEEDING  ARIS-
ING  OUT  OF  THIS  LEASE,  THE  TENANT SHALL RECOVER ATTORNEY'S FEES OR
EXPENSES, OR BOTH, FROM THE LANDLORD TO THE SAME EXTENT THE LANDLORD  IS
ENTITLED  TO RECOVER ATTORNEY'S FEES OR EXPENSES, OR BOTH AS PROVIDED IN
THIS LEASE.
  S 2. This act shall take effect immediately, and shall  apply  to  all
new  lease  agreements for real property executed on and after the first
of the month following such effective date.