Landlord Can Seek Rent Due Despite Overcharge Claim

LVT Number: 10416

In January 1995 landlord sued to evict tenants for nonpayment of rent. Tenants had stopped paying rent in November 1993. Tenants all had pending rent overcharge complaints before the DHCR. The trial court dismissed the cases, finding that landlord couldn't sue for nonpayment until the DHCR determined tenants' legal rents. Landlord appealed. The appeals court ruled for landlord, reopening the cases. Landlord could collect rent even while the overcharge complaints were pending at the DHCR.

In January 1995 landlord sued to evict tenants for nonpayment of rent. Tenants had stopped paying rent in November 1993. Tenants all had pending rent overcharge complaints before the DHCR. The trial court dismissed the cases, finding that landlord couldn't sue for nonpayment until the DHCR determined tenants' legal rents. Landlord appealed. The appeals court ruled for landlord, reopening the cases. Landlord could collect rent even while the overcharge complaints were pending at the DHCR. Landlord was currently entitled to collect the legal registered rent and the rent set forth in the most recent signed lease or lease renewal. If the DHCR ultimately found overcharges, tenants could offset these amounts against their rents.

24 Fifth Ave. Associates v. Malekian: NYLJ, p. 26, col. 6 (2/21/96) (App. T. 1 Dept.; Parness, JP, McCooe, Freedman, JJ)