FORFEITURE AND PENALTY PROVISIONS WERE INAPPLICABLE TO 2014 AGREEMENT
When Plaintiff F started a small claims dispute in Queens County Civil Court against his former landlord, M, seeking to recover $3600 – which included his security deposit and “punitive damages” pursuant to General Obligations Law § 7-108 (1-a) (g) (“Any person who violates the provisions of this subdivision shall be liable for actual damages, provided a person found to have willfully violated this subdivision shall be liable for punitive damages of up to twice the amount of the deposit or advance.”) -- the case ended up getting dismissed.
And on appeal, the Appellate Term, Second Department, noted that since the forfeiture and penalty provisions of the security deposit law applied “to non-rent-stabilized leases entered into on or after July 14, 2019,” they were thus inapplicable to F’s 2014 lease.
Given that “substantial justice” had been rendered by the Civil Court, the AT2 left the dismissal undisturbed.
Did someone have a false sense of security there?
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DECISION