Tenant Who Withdrew DHCR Complaint Can Proceed with Claim in Court

Tenant sued landlord in court for rent overcharge after discovering, when landlord decided not to renew her unregulated lease, that she was rent stabilized because the building received J-51 tax benefits during her tenancy. Tenant first filed a rent overcharge complaint with the DHCR but rejected landlord’s attempt to reimburse her for overcharges. Tenant then filed the court action against landlord and withdrew her DHCR complaint. The DHCR then terminated tenant’s rent overcharge proceeding. Landlord filed a PAR, claiming that by filing the court action and withdrawing the DHCR complaint, tenant was forum shopping. Landlord asked the court to either dismiss the case or to delay the court case pending determination of landlord’s PAR pending before the DHCR. The court ruled against landlord, finding that there was no case with the DHCR for landlord to challenge as tenant had the right to withdraw her DHCR complaint and had done so. 

Dougherty v. E.B.D. Assoc.: Index No. 151589/16, NYLJ No. 1202765831351 (Sup. Ct. NY; 8/5/16/ Wright, J)