Assignee Can't Make Claim on Tenant's Behalf

Tenant filed a fair market rent appeal. The DHCR ruled for tenant and ordered a refund of $10,000. Tenant appealed, claiming that he should also get triple damages or interest. The DHCR ruled against tenant, finding that triple damages and interest didn't apply to a fair market rent appeal refund. Tenant had by now moved out of the apartment and lived out of state. He assigned his rights to any money still owed him by landlord to an expediter hired by tenant to represent him in his action against the DHCR. Assignee appealed the DHCR's decision in court. The DHCR claimed that assignee had no standing to appeal the case. The court ruled for the DHCR and dismissed the appeal. Tenant's assignment to assignee was, in effect, a retainer agreement that allowed assignee to engage in the unauthorized practice of law. Only tenant had standing to bring the court case. And Judiciary Law Section 489 bars assignments made for the purpose of bringing lawsuits. The court also pointed out that, even if assignee was authorized to maintain the case, the DHCR's ruling would be upheld. Landlord didn't have to pay tenant triple damages or interest.

Rutherford v. DHCR: NYLJ, 7/28/04, p. 18, col. 1 (Sup. Ct. NY; Zweibel, J)