Tenant Can File Rent Overcharge Complaint Despite Landlord's Bankruptcy

Tenant complained of a rent overcharge. For some period, she had to leave her apartment because of a fire. She continued to pay landlord the full rent even though the DHCR ruled that her rent was reduced to $1.00 per month while repairs were being made. Landlord claimed that tenant couldn't complain because it had filed a bankruptcy petition in 2000 and there was automatic delay barring anyone from suing landlord for any money claim. The DRA ruled for tenant and ordered landlord to refund $9,500. Landlord appealed and lost. Landlord's bankruptcy filing didn't bar tenant from filing an overcharge complaint while the bankruptcy case was pending. The Bankruptcy Code states that the filing of a petition won't delay the commencement or continuation of a proceeding by the state to enforce state regulations. An overcharge proceeding fits into this exception to a bankruptcy delay.

Dilone: DHCR Adm. Rev. Dckt. No. SK410051RT (1/5/05) [5-pg. doc.]