Tenant Can Offset Rent Owed by Overcharge Award

January 1, 1999

LVT Number: 12916

Facts: Landlord sued to evict tenant for nonpayment of rent. Tenant claimed a rent overcharge. The DRA had found a rent overcharge, and landlord's PAR was pending. In a settlement agreement, tenant agreed to pay the full rent until landlord's PAR was decided. After this settlement agreement was signed, the DHCR denied landlord's PAR. So tenant claimed landlord now owed tenant the full refund and she didn't have to pay outstanding rent. Court: Tenant wins. The court agreement between landlord and tenant took into consideration any rent overcharge to be determined by the DHCR.

Facts: Landlord sued to evict tenant for nonpayment of rent. Tenant claimed a rent overcharge. The DRA had found a rent overcharge, and landlord's PAR was pending. In a settlement agreement, tenant agreed to pay the full rent until landlord's PAR was decided. After this settlement agreement was signed, the DHCR denied landlord's PAR. So tenant claimed landlord now owed tenant the full refund and she didn't have to pay outstanding rent. Court: Tenant wins. The court agreement between landlord and tenant took into consideration any rent overcharge to be determined by the DHCR. So tenant could withhold the full overcharge amount as decided by the DHCR.

St. James, LLC v. Leisenring: NYLJ, p. 25, col. 1 (12/30/98) (Civ. Ct. Kings; Birnbaum, J)

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