No Overcharge Found Where Legal Rent Set by Prior Settlement Agreement

(Decision submitted by Karen Schwartz-Sidrane, Esq. of the Rockville Centre law firm of Sidrane & Schwartz-Sidrane, LLP, attorneys for the landlord.)

Rent-stabilized tenant complained of rent overcharge. The DRA ruled against tenant, finding that while the overcharge complaint was pending, landlord and tenant settled a nonpayment proceeding in housing court where the agreement stated that the legal regulated rent was $1,100 and that tenant's rent issues were resolved. Tenant appealed and lost. Tenant argued that the issue of rent overcharge wasn't raised as a counterclaim to the nonpayment proceeding. But the court so-ordered the settlement agreement, which determined and set the legal regulated rent for the apartment at $1,100 per month. So this wasn't merely a case where the tenant and landlord agreed upon a rent. Tenant was represented by an attorney in the court proceeding. The DHCR said that it wouldn't contradict the court's order setting the legal regulated rent determined before the DRA reached the issue. The DHCR also stated that it didn't matter that the specific legal issue before the court was other than a rent overcharge claim. The DRA correctly deferred to the court as to the legal regulated rent.

Martinez: DHCR Adm. Rev. Docket No. FX210045RT (10/3/18) [2-pg. doc.]