Tenant Can Withdraw DHCR Complaint and Sue Landlord in Court

LVT Number: #30870

Tenant sued landlord claiming improper, fraudulent apartment deregulation and rent overcharge. Tenant claimed that he was rent stabilized. Tenant had filed a complaint with the DHCR in March 2018 but later withdrew that complaint and filed his court complaint in November 2018. Landlord asked the court to dismiss the case, arguing that the DHCR had primary jurisdiction and that tenant was improperly forum-shopping.

Tenant sued landlord claiming improper, fraudulent apartment deregulation and rent overcharge. Tenant claimed that he was rent stabilized. Tenant had filed a complaint with the DHCR in March 2018 but later withdrew that complaint and filed his court complaint in November 2018. Landlord asked the court to dismiss the case, arguing that the DHCR had primary jurisdiction and that tenant was improperly forum-shopping.

The court ruled against landlord. In April 2020, New York's highest court ruled in Collazo v. Netherland Prop. Assets LLC that HSTPA specified that the courts and DHCR have concurrent jurisdiction and that tenant has the choice of forum. So tenant was entitled to withdraw his DHCR complaint of rent overcharge and proceed in court. Since tenant claimed that there was fraud involved, it was unclear yet whether the four-year lookback period would apply to the complaint. 

Badesch v. Fort 710 Assoc., LP: Index No. 160639/2018, 2020 NY Slip Op 31796(U)(Sup. Ct. NY; 6/9/20; Perry, J)