Tenant's Withdrawal of Complaint Invalid

Tenants complained of a rent overcharge. The DHCR ruled for tenants and ordered landlord to refund over $50,000. Landlord appealed, claiming that the DHCR's decision was unreasonable because tenants had withdrawn their complaint. One of the two tenants had signed a notice withdrawing the complaint after landlord agreed to make repairs. The court ruled for landlord and revoked the overcharge finding. The DHCR and tenants appealed. The appeals court ruled for the DHCR and tenants. Tenant's supposed withdrawal of the complaint was a waiver of a benefit under rent stabilization and was invalid as a matter of public policy because the withdrawal wasn't approved by the DHCR or a court. The DHCR's finding of rent overcharge was reasonable and was reinstated.

85 Eastern Pkwy. Corp. v. DHCR: NYLJ, 9/23/02, p. 26, col. 1 (App. Div.2 Dept.; Santucci, JP, Miller, Krausman, Goldstein, JJ)