Tenant Can't Counterclaim for Overcharge Award Against New Landlord

July 31, 2003

LVT Number: 16755

Facts: New landlord sued to evict tenant for nonpayment of rent. Tenant owed $19,000 in back rent. Tenant claimed that landlord owed him $57,000 based on a DHCR rent overcharge award. The court ruled for tenant in part. Tenant was entitled to offset the overcharge against monthly rent due. So tenant got $19,000 on his overcharge claim, and landlord's nonpayment claim was dismissed. Ten- ant appealed, claiming that new land- lord was responsible for refunding the entire overcharge. Court: Tenant loses. The DHCR rent overcharge award was made in an order against prior landlord.

Facts: New landlord sued to evict tenant for nonpayment of rent. Tenant owed $19,000 in back rent. Tenant claimed that landlord owed him $57,000 based on a DHCR rent overcharge award. The court ruled for tenant in part. Tenant was entitled to offset the overcharge against monthly rent due. So tenant got $19,000 on his overcharge claim, and landlord's nonpayment claim was dismissed. Ten- ant appealed, claiming that new land- lord was responsible for refunding the entire overcharge. Court: Tenant loses. The DHCR rent overcharge award was made in an order against prior landlord. New landlord wasn't a party to that case. So the court incorrectly awarded tenant even a partial refund of the overcharge award. The nonpayment case was reopened.

Sanford Ave. Realty Co. LLC v. Reynoso: NYLJ, 7/17/03, p. 23, col. 4 (App. T. 2 Dept.; Pesce, PJ, Patterson, Golia, JJ)

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