Tenant Gave Up Right to Claim Overcharge

Landlord sued to evict two tenants from one apartment. Landlord and tenants settled the case. In a court-ordered settlement agreement, landlord agreed to divide the apartment into two apartments and to give each tenant a rent-stabilized lease at a new rent. In exchange, tenants agreed not to file any rent overcharge complaints. Landlord later asked the court to hold one tenant in contempt for filing an overcharge complaint with the DHCR. Tenant claimed that the agreement not to challenge the initial rent was unenforceable, because tenant couldn't waive his rights under rent stabilization. The court ruled for landlord. Tenant wasn't rent-stabilized at the time he signed the agreement, and he had been represented by an attorney. This was a valid agreement by which tenant gained an advantage he might not have gotten if he hadn't settled the case. The court ruled that landlord could collect damages if the DHCR ruled in tenant's favor on the overcharge complaint, but couldn't yet determine what those damages would be. The court recommended that tenant withdraw his rent overcharge complaint.

149 West Four Assoc. v. Brakeley: NYLJ, p. 28, col. 5 (3/3/99) (Civ. Ct. NY; Malatzky, J)