Tenant Can Offset DHCR-Ordered Refund Against Rent

Landlord sued to evict tenant for nonpayment of rent. The court ruled for landlord, and tenant appealed, claiming that she was entitled to offset against her rent a refund ordered by the DHCR in response to her fair market rent appeal. Landlord claimed that tenant shouldn't be allowed to offset her rent, because she had filed a judgment against landlord based on the DHCR's order. The lower and higher appeals courts both ruled against landlord. Even if tenant filed a judgment, it couldn't be enforced, because under the Rent Stabilization Law, a judgment can't be enforced in a fair market rent appeal without starting a separate court case. Tenant hadn't done this. Tenant was entitled to withhold rent under the law until the refund was fully paid.

Kingsbridge Partners v. Atkinson: NYLJ, p. 27, col. 3 (10/18/99) (App. Div.1 Dept.; Ellerin, PJ, Rosenberger, Tom, Lerner, Saxe, JJ)