Landlord Can Submit Settlement Agreement on Appeal

(Decision submitted by Sherrie Taylor of the Hewlett, N.Y., law firm of Pennisi Daniels & Norelli, LLP, attorneys for the landlord.) Facts: Tenants complained of a reduction in services, claiming that landlord didn't maintain hot water. The DRA ruled for tenants and reduced their rents. Landlord appealed and submitted for the first time with its PAR a copy of a court settlement agreement that landlord claimed resolved the hot-water issues. The DHCR ruled against landlord, and landlord challenged this ruling in court. Court: Landlord wins. Although the DHCR isn't required to review proof submitted for the first time with a PAR, the DHCR was then notified that a court had already ruled on an issue raised in the DHCR case. The DHCR was bound by the court's decision and no longer had authority to decide the issues. The court settlement agreement stated that any and all outstanding and undecided requests to the DHCR for rent reductions would be delayed for 60 days so that landlord could make repairs. The DHCR complaints were deemed withdrawn by the court, and so, shouldn't have been decided by the DHCR.

Diagonal Realty LLC v. DHCR: Index No. 123889/00 (Sup. Ct. NY 9/21/01; Zweibel, J) [8-pg. doc.]