Court, Not DHCR, Must Rule on Tenants' Overcharge Claims

February 17, 2014

LVT Number: #25310

Tenants sued landlord for rent overcharge in Civil Court. The court referred the overcharge claims to the DHCR and otherwise marked the case off calendar pending the DHCR's determination. Tenants appealed, claiming that the court should decide his claim. The appeals court ruled for tenants. The DHCR itself had properly declined in a 2009 agency order to "assume jurisdiction" over tenants' overcharge claims. The DHCR ruling was upheld by State Supreme Court when landlord filed an Article 78 petition appealing that order.

Tenants sued landlord for rent overcharge in Civil Court. The court referred the overcharge claims to the DHCR and otherwise marked the case off calendar pending the DHCR's determination. Tenants appealed, claiming that the court should decide his claim. The appeals court ruled for tenants. The DHCR itself had properly declined in a 2009 agency order to "assume jurisdiction" over tenants' overcharge claims. The DHCR ruling was upheld by State Supreme Court when landlord filed an Article 78 petition appealing that order. The Civil Court had well-recognized concurrent jurisdiction with the DHCR over overcharge claims, and must rule on tenants' overcharge claims in this case.

Morton v. 338 West 46th Street Realty LLC: 42 Misc.3d 135(A), 2014 NY Slip Op 50075(U) (App. T. 1 Dept.; 1/28/14; Schoenfeld, JP, Shulman, Hunter Jr., JJ)

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