Appeals Court Denies Tenants' Attempt to Reargue Dismissal of Overcharge Claim

Tenants sued landlord for rent overcharge. The court dismissed the case based on a settlement agreement between landlord and tenants, which was signed in a prior court action where both sides were represented by attorneys. Tenants appealed and lost in 2020 [see LVT #30672]. At that time, the appeals court found that the settlement agreement in the prior case was enforceable because it: (a) stated that tenants were rent stabilized; (b) calculated in good faith the legal regulated rent for tenants; and (c) provided compensation for the claimed overcharges. Tenants later went back to the lower court and sought to renew their request to vacate the prior order. The court ruled against tenants in 2021.

Tenants then appealed, and lost again. As a procedural matter, tenants weren't entitled to renew their arguments since there was no change in the law after the prior court order was issued. The appellate court's decision in another 2021 case merely reaffirmed the existing law that an agreement to circumvent the Rent Stabilization Law is void and that parties are not the deciders of whether an apartment is subject to rent stabilization.

Kattan v. 119 Christopher LLC: Index No. 156876/16, App. No. 15717, Case No. 2021-04477, 2022 NY Slip Op 02362 (App. Div. 1 Dept.; 4/12/22; Manzanet-Daniels, JP, Kapnick, Webber, Gesmer, Oing, JJ)