Settlement Stipulation Vacated Based on Overcharge
LVT Number: 8837
Landlord sued to evict tenant for nonpayment of rent. Landlord and tenant signed a stipulation whereby tenant agreed to pay back rent. Tenant wasn't represented by an attorney. Tenant later got a lawyer, who claimed a rent overcharge and asked the court to vacate the stipulation. The trial court ruled against tenant, stating that tenant's remedy was to file a complaint with the DHCR. Tenant appealed. The appeals court ruled for tenant. The apartment's rent history showed that tenant could have an overcharge claim. It would be fundamentally unfair to bind an unrepresented tenant to a stipulation that let landlord collect a rent overcharge. It would also be unfair to make tenant go through the long process of having the DHCR decide its rent overcharge claim when the issue could quickly be resolved in court. The case was sent back for trial.
1460 Grand Concourse Assoc. v. Martinez: NYLJ, p. 29, col. 1 (5/6/94) (App. T. 1 Dept.; Ostrau, JP, Miller, Glen, JJ)