Settlement Agreement Not Signed by Court Wasn't Binding

LVT Number: #27979

Tenant complained of rent overcharge. Landlord claimed that the apartment was unregulated. The DRA ruled against tenant, based on a settlement agreement between the parties so-ordered in a housing court case. In that case, tenant agreed to a deregulated lease commencing on June 1, 2007, with a monthly rent of $2,000 and a preferential rent of $1,700. Tenant also agreed not to challenge the apartment deregulation. Tenant appealed and won in part. Tenant claimed that the settlement agreement was void.

Tenant complained of rent overcharge. Landlord claimed that the apartment was unregulated. The DRA ruled against tenant, based on a settlement agreement between the parties so-ordered in a housing court case. In that case, tenant agreed to a deregulated lease commencing on June 1, 2007, with a monthly rent of $2,000 and a preferential rent of $1,700. Tenant also agreed not to challenge the apartment deregulation. Tenant appealed and won in part. Tenant claimed that the settlement agreement was void. The DHCR stated that it didn't have the authority to vacate a so-ordered court settlement. But in this case the court didn't actually so-order the settlement agreement. This was simply an agreement between landlord and tenant, who couldn't remove the apartment from rent stabilization by agreement. The case was sent back to the DRA for reconsideration. 

Rostoff: DHCR Adm. Rev. Docket No. EW410053RT (8/15/17) [3-pg. doc.]

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