Tenant Can Withdraw DHCR Complaint and File Claim in State Court Instead

Rent-stabilized tenant complained to the DHCR of rent overcharge. Later, in March 2019, tenant's attorney wrote to the DRA and stated that tenant wished to withdraw his complaint because he wanted to file an action in State Supreme Court making his overcharge claim. The DRA terminated tenant's rent overcharge proceeding based on the attorney's letter.

Landlord appealed and lost. Landlord argued that tenant withdrew his complaint after landlord submitted an answer and documentation that would've resulted in dismissal, that tenant was forum shopping, and that the DHCR should decide the case on the merits. But the DHCR ruled that there's no requirement under the Rent Stabilization Law or Code that the DHCR decide a case on the merits, or that a party can't withdraw a complaint once an answer has been filed. And RSC Section 2527.6, which permits conditional or provisional orders, doesn't require a dismissal with prejudice in a matter being withdrawn by one side. Both the Housing Court and State Supreme Court have concurrent jurisdiction over rent overcharges and determination of the legal regulated rent. So there was nothing improper in tenant's choice to proceed with his claim in court.

LLS Realty Associates LLC: DHCR Adm. Rev. Docket No. HQ410007RO (11/27/19) [2-pg. doc.]