Housing Court Can't Grant Attorney's Fees for Related DHCR Case

Rent-stabilized tenant moved into an apartment in 1991 at a monthly rent of $5,747 with a preferential rent of $3,000. Prior landlord renewed the lease a number of times at the preferential rate, but in 2004, landlord offered tenant a renewal at the higher legal regulated rent of $7,600. Landlord claimed that it wasn't required to continue the preferential rent. Tenant filed a rent overcharge complaint with the DHCR in 2005, and in 2005 landlord sued to evict tenant in housing court for nonpayment of rent. The court delayed ruling on the nonpayment case until the DHCR decided the overcharge claim. The DHCR initially ruled for landlord, but after tenant filed an Article 78 appeal, the court sent the case back to the DHCR to reconsider the parties' intent under the 1991 lease. The DHCR ultimately ruled for tenant.

Tenant then asked the housing court to award attorney's fees in connection with the nonpayment proceeding, as well as the DHCR case and Article 78 proceeding. The housing court ruled for tenant, and landlord appealed. The appeals court ruled for landlord, finding that when landlord started the housing court case in 2004 it had a colorable claim. Tenant then appealed. The higher appeals court ruled for tenant in part. Tenant was entitled to attorney's fees in connection with the housing court case based on Real Property Law (RPL) Section 234 and his lease clause permitting attorney's fees for not performing a lease requirement. But tenant wasn't entitled to attorney's fees in the DHCR and Article 78 proceedings under RPL Section 234. This is true even when the DHCR proceeding is related to the housing court case.

251 CPW Housing LLC v. Pastreich: 2015 NY Slip Op 00208, 2015 WL 59141 (App. Div. 1 Dept.; 1/6/15; Mazzarelli, JP, Renwick, Andrias, Richter, Feinman, JJ)