Tenant May Get Fees from DHCR

Tenant complained that the first stabilized rent for his apartment was greater than the fair market rent. In 1986 the DHCR ruled for tenant. In 1995 the DHCR revoked that decision and ruled for landlord. Tenant appealed. The court ruled for tenant and upheld the original order reducing tenant's rent and granted tenant attorney's fees in an amount to be determined at a hearing before a Special Referee. The Special Referee awarded tenant fees for the court challenge and the attorney's fees hearing. Tenant then asked the court for a judgment to cover the amount of fees awarded. The DHCR agreed to pay the fees for tenant's court challenge but said it shouldn't have to pay the attorney's fees incurred at the attorney's fees hearing. The court ruled against the DHCR. Under the Equal Access to Justice Act, tenant could collect from the DHCR attorney's fees incurred in connection with a hearing held before a Special Referee. Tenant and the DHCR agreed that the amount of those fees was $3,500. But, under the law, tenant could collect the attorney's fees only if his net worth was under $50,000. A hearing was ordered to decide if tenant qualified.

Matter of Spedicato v. DHCR: NYLJ, p. 29, col. 3 (7/2/97) (Sup. Ct. NY; Goodman, J)