Khoudary v. Salem Cty

In Khoudary v. Salem Cty., 260 N.J. Super. 79, 81, 615 A.2d 281 (App.Div.1992), a landlord sued a county welfare agency for unpaid rent with respect to an apartment rented to a client of the agency. The landlord rented the premises without first obtaining an occupancy permit, in violation of a local housing ordinance. Id. at 83, 615 A.2d 281. The parties executed a lease, but the local housing authorities declared the premises uninhabitable before the tenants took occupancy. Ibid. The Court held the suit for rent was frivolous and subject to an award of attorneys' fees under N.J.S.A. 2A:15-59.1. Id. at 88. In that context, we stated that "a landlord's right to receive payment of rent for a residential unit is contractual, and is based upon consideration in the form of the landlord's providing the tenant with a habitable living unit which complies with the requirements of the state and municipal law." Id. at 85, 615 A.2d 281. (citing Berzito v. Gambino, 63 N.J. 460, 469, 308 A.2d 17 (1973)). The Court explained that because plaintiff was unable to provide the prospective tenant with a habitable residential rental unit, "plaintiff had no contractual basis on which to demand rent because he could not deliver lawful possession and quiet enjoyment of the premises." Ibid. The Court stated that "a landlord cannot require of a tenant what the law forbids." Ibid.