Tenant Who Took Rent Credits Can't Seek Prejudgment Interest

Tenant sued landlord for prejudgment interest on a fair market rent appeal (FMRA) award as well as the outstanding balance of the FMRA award and attorney's fees. The court granted landlord's request to dismiss the case. Tenant appealed and lost. A tenant who's compelled to bring a court action to enforce a DHCR FMRA order is entitled to prejudgment interest computed from the date of the DRA's order. But if a tenant is not otherwise compelled to bring the court case, the tenant isn't entitled to recover interest. In this case, tenant chose to withhold rent payments until the principal balance of the FMRA award was fully credited to his account. Tenant then resumed paying rent in 2007. Under these circumstances, tenant wasn't entitled to any further principal, prejudgment interest, or attorney's fees.

Eisner v. M & E Rubin, LLC: 985 N.Y.S.2d 692, 2014 NY Slip Op 03477 (App. Div. 2 Dept.; 5/14/14; Eng, PJ, Miller, Hinds-Radix, Maltese, JJ)