Tenant Didn't Give Up Right to File Fair Market Rent Appeal

Facts: Tenant filed fair market rent appeal, challenging first rent-stabilized rent for her apartment. The DRA ruled for tenant, and landlord appealed. Tenant had lived as occupant in apartment with prior rent-controlled tenant, who died in 1988. Tenant claimed that she was deceased tenant's common-law wife. Landlord then sued to evict tenant. This was before the 1989 Court of Appeals ruling in Braschi v. Stahl Assocs. gave nontraditional family members pass-on rights. Landlord and tenant settled the case by letter agreement in which landlord agreed to give tenant a rent-stabilized lease and tenant agreed to pay rent of $1,000 per month. After the Braschi decision, tenant started paying the rent-controlled rent, and landlord sued to evict her for nonpayment. The court ruled for landlord, finding that they had fairly settled the case before Braschi was decided. Landlord claimed that because the issue of tenant's rent had already been decided by the courts, the DHCR couldn't now reduce the first stabilized rent. The DHCR ruled for landlord, finding that tenant had given up her right to a fair market rent appeal. Tenant appealed. Court: Tenant wins. The DHCR incorrectly decided that the issue of tenant's fair market rent had been decided by the courts. In the first case, the issue was whether tenant was subject to rent control. In the second case, the issue was whether tenant's rent-stabilized lease was valid. The DHCR was ordered to reinstate the DRA's order, which reduced tenant's first stabilized rent from $1,000 to $900.

Ammon v. DHCR: NYLJ, p. 29, col. 4 (5/9/97) (Sup. Ct. NY; Weissberg, J)