Landlord Can File Late PAR

(Decision submitted by James R. Marino of the Manhattan law firm of Kucker & Bruh, LLP, attorneys for the landlord.) acts:Landlord bought a building in 1988. Rent-stabilized tenant moved into an apartment in 1990. In 1991, a receiver took over the building in a foreclosure. Later in 1991, new landlord bought the building. In 1992, tenant complained of a rent overcharge. The complaint named only new landlord. In 1995, the DRA ruled for tenant, and new landlord appealed. The DHCR ruled against new landlord and found that prior landlord had collected $31,000 of the $38,000 overcharge. The DHCR's order also stated that prior landlord and receiver were sent copies of tenant's complaint and didn't respond. In 1996, prior landlord got court papers from tenant seeking to enforce the overcharge judgment. Prior landlord asked the DHCR to reconsider its PAR decision because prior landlord had received no notice of tenant's overcharge complaint. The DHCR denied landlord's request. Prior landlord then started a court case, challenging the DHCR's ruling. The court and appeals court dismissed the case because prior landlord hadn't first filed a PAR. Prior landlord then filed a PAR, again advising the DHCR that it never received tenant's overcharge complaint. The DHCR ruled against prior landlord because its PAR wasn't filed on time. Prior landlord then brought another court case, claiming that the DHCR's decision and handling of the case were unreasonable. Court:Prior landlord wins. Clearly, there was an irregularity in a vital matter, which warranted revocation of the DHCR's prior order under Rent Stabilization Code Section 2529.9. The DHCR's claim that it was too late to reconsider the case wasn't supported by law and was irrational. The case was sent back to the DHCR for reconsideration of prior landlord's claim.

Sassouni v. DHCR: Index No. 107053/01 (2/11/02) (Sup. Ct. NY; Bransten, J) [11-pg. doc.]