Legislation Details

File #: Int 1058-2026    Version: * Name: Attorneys’ fees provisions in commercial leases.
Type: Introduction Status: Committee
Committee: Committee on Small Business
On agenda: 9/10/2026
Enactment date: Law number:
Title: A Local Law to amend the administrative code of the city of New York, in relation to attorneys’ fees provisions in commercial leases
Sponsors: Kayla Santosuosso
Council Member Sponsors: 1
Summary: This bill would require that when a commercial lease contains a provision allowing landlords to recover attorneys’ fees in a legal proceeding against a tenant for a tenant’s default on lease obligations, there be a presumption that tenants can recover attorneys’ fees for a landlord’s default on lease obligations and in the successful defense of a legal proceeding commenced under the lease by the landlord against the tenant. The tenant would be able to recover attorneys’ fees through a legal proceeding commenced against the landlord or through a counterclaim in any legal proceeding commenced by the landlord against the tenant. This bill would apply to contracts entered into or renewed after the bill’s effective date.
Attachments: 1. Summary of Int. No. 1058, 2. Int. No. 1058, 3. Memorandum in Support, 4. September 10, 2026 - Stated Meeting Agenda

Int. No. 1058

 

By Council Member Santosuosso

 

A Local Law to amend the administrative code of the city of New York, in relation to attorneys’ fees provisions in commercial leases

 

Be it enacted by the Council as follows:

 

Section 1. Title 22 of the administrative code of the city of New York is amended by adding a new chapter 9-A to read as follows:

CHAPTER 9-A

ATTORNEYS’ FEES IN COMMERCIAL LEASES

§ 22-911 Provision to recover attorneys’ fees in commercial leases. a. Where a commercial lease provides that in a legal proceeding the landlord may recover attorneys’ fees incurred by the landlord as the result of the failure of the tenant to perform any covenant or agreement contained in such lease, there shall be implied in such lease:

1. A covenant by the landlord to pay to the tenant attorneys’ fees incurred by the tenant as the result of the failure of the landlord to perform any covenant or agreement contained in such lease and in the successful defense of any legal proceeding commenced by the landlord against the tenant arising out of such lease; and

2. An agreement that the tenant may recover attorneys’ fees under paragraph 1 of this subdivision in a legal proceeding commenced against the landlord or by way of counterclaim in any legal proceeding commenced by the landlord against the tenant.

b. Any waiver of this section is unenforceable and void as against public policy.

§ 2. This local law takes effect immediately, provided that where the provisions of section 22-911 of the administrative code of the city of New York, as added by section one of this local law, cannot be applied consistently with currently applicable contracts, such provisions only apply with respect to contracts entered into or renewed after the effective date of this local law.

EH

LSR #23164

7/31/2026 10:30 AM