The New Jersey Appellate Division issued an important reported opinion concerning the Fair Eviction Notice Act, commonly referred to the “Stack Amendment.” This law governs a tenant’s right to stop an eviction based upon non-payment of rent if the tenant pays the rent due within three business days after the date on which the warrant of removal is posted to the unit or a lock out is executed due to nonpayment of rent. The Appellate Division was tasked with determining the amount of the rent payment required under the Stack Amendment for a tenant to stop an eviction.
Summary of the Decision
The Appellate Division affirmed the Trial Court’s interpretation of the Stack Amendment. The Court held that when a tenant seeks to avoid eviction by making a rent payment within the three-business-day period after the posting of a warrant of removal or lockout, the amount the tenant must pay is the amount listed in the Judgment of Possession (“JOP”) not any additional rent or fees that may have accrued afterward. This is because the JOP is the judicial determination that allows a landlord to evict a tenant.
The Court reasoned that:
- The Stack Amendment does not define the terms “rent payment” and “all rent due and owing” in the statute. It does not specifically identify the amount of the “rent payment” a tenant must pay to stop the eviction.
- The JOP represents the Court-determined basis for eviction under the Anti-Eviction Act. The JOP allows the landlord to evict the tenant because after a JOP is entered, a landlord can obtain a warrant of removal.
- Using a judicially fixed amount would avoid uncertainty and eliminate the dispute as to the amount a tenant needed to pay to avoid eviction.
- If a landlord believes additional rent accrued after entry of the JOP, the proper avenue is to file a separate action for those amounts, rather than conditioning the tenant’s statutory right of reinstatement on paying an undefined or disputed sum.
- The rent payment allows a tenant to avoid eviction, and results in the dismissal of the JOP.
- The Anti Eviction Act is remedial legislation and should be liberally construed to protect the rights of tenants, with all doubts resolved in favor of the tenant.
What This Means for Landlords:
- The rent payment to avoid eviction is limited to the JOP amount. Tenants exercising their rights under the Stack Amendment need only pay the amount set forth in the JOP to prevent an eviction.
- Landlords retain the right to pursue any post JOP rent and/or charges in a separate action. However, those additional sums cannot be required as a prerequisite for reinstating the tenancy. The Court believed its decision “streamlined resolution and minimized unnecessary disputes.”
- Once the JOP amount is paid, a landlord must accept the payment and notify the Court within two business days. The Court will then dismiss the eviction action with prejudice.
A landlord may file a new summary dispossession action for the new amounts owed.
As a reminder, the Stack Amendment requires landlords to accept rent payments made and within two (2) business days thereafter, the landlord is obligated to provide written notice to the Court that the rent was paid. It also provides that if a landlord violates any provision, the landlord could be subject to a penalty of not more than $500.00 for each offense.
If you have questions about how this decision impacts you and would like to discuss your next steps, please contact us.
Tracey Goldstein, Esq.
tgoldstein@goldsteinlepore.com
(973) 324-5400 x115
Adrienne LePore, Esq.
(973) 324-5400 x106
This information is provided solely for information purposes. It should not be construed as legal advice on any specific matter and is not intended to create an attorney-client relationship. The information provided herein may not be applicable to all situations and should not be acted upon without specific legal advice based upon particular circumstances. Each legal matter is unique, and prior results do not guarantee a similar outcome.