Tenant Can Raise Overcharge Claim

LVT Number: 15109

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Tenant claimed a rent overcharge. The court ruled for landlord and dismissed tenant's overcharge claim. Tenant appealed. The appeals court ruled for tenant and sent the case back for a new trial. Landlord was collecting rent that was higher than the legal regulated rent. The DHCR had dismissed a prior overcharge complaint by tenant but it wasn't on the merits. So there was no reason for the court to dismiss tenant's overcharge claim. It should have been considered as a defense to the nonpayment case.

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Tenant claimed a rent overcharge. The court ruled for landlord and dismissed tenant's overcharge claim. Tenant appealed. The appeals court ruled for tenant and sent the case back for a new trial. Landlord was collecting rent that was higher than the legal regulated rent. The DHCR had dismissed a prior overcharge complaint by tenant but it wasn't on the merits. So there was no reason for the court to dismiss tenant's overcharge claim. It should have been considered as a defense to the nonpayment case.

Carroll St. Properties v. Johnson: NYLJ, 6/26/01, p. 20, col. 1 (App. T.2 Dept; Aronin, JP, Scholnick, Patterson, JJ)