Landlord Didn't Deliver DC-2 Notice to Tenant

Facts: Second rent-stabilized tenant of formerly rent-controlled apartment complained of a rent overcharge in 1987. Landlord claimed that it had delivered a DC-2 notice to first rent-stabilized tenant, who never filed a fair market rent appeal, and that there were no subsequent overcharges. The DHCR ruled against tenant, and tenant appealed, claiming that the DC-2 wasn't properly delivered. The court sent the case back to the DHCR to process as a fair market rent appeal. The DHCR then ruled for tenant. Landlord had submitted the first page of the DC-2 notice that tenant supposedly initialed, but didn't submit the second page containing instructions to tenant, including the fair market rent appeal filing deadline, or proof of delivery to first tenant. So second tenant had the right to challenge the first stabilized rent. Landlord appealed. Court: Landlord loses. In its appeal, landlord argued for the first time that the DHCR didn't provide the proper DC-2 form at the time landlord delivered it. The court ruled against landlord. Landlord couldn't raise this claim for the first time on appeal, and even if it could, the form landlord used was the one used by the DHCR at that time.

14 L. Pierre Assocs. v. DHCR: NYLJ, 2/9/00, p. 27, col. 2 (Sup. Ct. NY; Madden, J)