Tenant Bound by Prior Agreement

(Decision submitted by James R. Marino of the Manhattan law firm of Kucker & Bruh, LLP, attorneys for the landlord.) Facts: Rent-stabilized tenant moved into an apartment in 1996 at a monthly rent of $1,700. Two years later, landlord raised tenant's rent to $1,900. Tenant complained to the DHCR of a rent overcharge. Landlord answered that the rent increases were based on rent guidelines increases and 1/40th improvements. Landlord never answered the DRA's requests for further information. The DRA ruled for tenant, and landlord appealed. Landlord said that she never received the DRA's follow-up notices because she was out of the country and tenant was collecting her mail for her. She also submitted an agreement that she and tenant had signed in which she agreed to let him move into a bigger apartment in the building and he agreed to withdraw his rent overcharge complaint. In response, tenant claimed that the agreement never went into effect. The DHCR ruled against landlord because tenant claimed that he didn't withdraw the complaint and because the agreement wasn't entered into in any court case. Landlord appealed, claiming that the DHCR's decision was arbitrary and unreasonable. Court: Landlord wins. The court and appeals court ruled that the DHCR's decision was unreasonable. The DHCR didn't find that the agreement didn't go into effect and, in fact, landlord showed that tenant did move into the bigger apartment. Landlord also sufficiently explained why she didn't answer the DRA's follow-up notices.

First Mark Development v. DHCR: NYLJ, 5/21/01, p. 24, col. 1 (App. Div.1 Dept.; Williams, JP, Ellerin, Wallach, Lerner, Rubin, JJ)