Landlord Didn't Get DHCR Approval of Settlement

Tenant complained of a rent overcharge. Tenant and landlord settled the case, and tenant signed a surrender and release agreement. Tenant moved into a different apartment in landlord's building, and landlord and tenant released each other from obligations. But neither landlord nor tenant ever submitted a copy of the settlement to the DRA. The DRA ruled for tenant, finding a rent overcharge. Landlord appealed. The DHCR ruled against landlord because the supposed settlement hadn't been approved by the DHCR or a court. Landlord appealed again. The court ruled against landlord, finding that the DHCR's decision was reasonable. The rent stabilization code requires any settlement of any issue before the agency to be approved by the DHCR or a court in order to be valid. In addition, this settlement agreement was overly broad, didn't refer to the overcharge, and related only to damages resulting from a flood in tenant's apartment.

Eastwood Towers Co. v. DHCR: NYLJ, p. 25, col. 3 (10/18/95) (Sup. Ct. NY; Arber, J)