§ 26-411. Judicial review.

a.   (1)  Any person who is aggrieved by the final
          determination of the city rent agency in an
          administrative proceeding protesting a regulation or
          order of such agency may, in accordance with article
          seventy-eight of the civil practice law and rules,
          within sixty days after such determination, commence a
          proceeding in the supreme count The petition shall
          specify his or her objections and pray that the
          regulation or order protested be enjoined or set aside
          in whole or in pan. Such proceeding may at the option
          of the petitioner be instituted in the county where the
          city rent agency has its principal office or where the
          property is located. The city rent agency shall file
          with such court the original or a transcript of such
          portions of the proceedings in connection with its
          final determination as are material under the petition.
          Such return shall include a statement setting forth, so
          far as practicable, the economic data and other facts
          of which the city rent agency has taken official
          notice. Upon the filing of such petition the court
          shall have jurisdiction to set aside the regulation or
          order protested, in whole or in pan, to dismiss the
          petition, or to remit the proceeding to the city rent
          agency, provided, however, that the regulation or order
          may be modified or rescinded by the city rent agency at
          any time notwithstanding the pendency of such
          proceeding for review.

     (2)  No objection to such regulation or order, and no
          evidence in support of any objection thereto, shall be
          considered by the court, unless such objection shall
          have been presented to the city rent agency by the
          petitioner in the proceedings resulting in the
          determination or unless such evidence shall be
          contained in the return. If application is made to the
          court by either party for leave to introduce additional
          evidence which was either offered and not admitted or
          which could not reasonably have been offered or
          included in such proceedings before the city rent
          agency, and the court determines that such evidence
          should be admitted, the court shall order the evidence
          to be presented to the city rent agency. The city rent
          agency shall promptly receive the same, and such other
          evidence as the city rent agency deems necessary or
          proper, and thereupon the city rent agency shall file
          with the court the original or a transcript thereof and
          any modification made in such regulation or order as a
          result thereof; except that on request by the city rent
          agency, any such evidence shall be presented directly
          to the court. Upon final determination of the
          proceeding before the court, the original record, if
          filed by the city rent agency with the court, shall be
          returned to the city rent agency.

b.   No regulation or order of the city rent agency shall be
     enjoined or set aside in whole or in part, unless the
     petitioner shall establish to the satisfaction of the court
     that the regulation or order is not in accordance with law,
     or is arbitrary or capricious. The effectiveness of an order
     of the court enjoining or setting aside, in whole or in
     part, any such regulation or order shall be postponed until
     the expiration of thirty days from the entry thereof. The
     jurisdiction of the supreme court shall be exclusive and its
     order dismissing the petition or enjoining or setting aside
     such regulation or order, in whole or in part, shall be
     final, subject to review by the appellate division of the
     supreme court and the court of appeals in the same manner
     and form and with the same effect as provided in the civil
     practice law and rules for appeals from a final order in a
     special proceeding. Notwithstanding any provision of
     paragraph one of subdivision (b) of section five thousand
     seven hundred one of the civil practice law and rules to the
     contrary, any order of the court remitting the proceeding to
     the city rent agency may, at the election of the city rent
     agency, be subject to review by the appellate division of
     the supreme court and the court of appeals in the same
     manner and form and with the same effect as provided in the
     civil practice law and rules for appeals from a final order
     in a special proceeding. All such proceedings shall be heard
     and determined by the court and by any appellate court as
     expeditiously as possible and with lawful precedence over
     other matters. All such proceedings for review shall be
     heard on the petition, manuscript and other papers, and on
     appeal shall be heard on the record, without requirement of
     printing.

c.   Within thirty days after arraignment, or such additional
     time as the court may allow for good cause shown, in any
     criminal proceeding, and within five days after judgment in
     any civil or criminal proceeding, brought pursuant to
     subdivision ten of section one of the state enabling act or
     section 26-413 of this chapter involving alleged violation
     of any provision of any regulation or order of the city rent
     agency, the defendant may apply to the court in which the
     proceeding is pending for leave to file in the supreme court
     a petition setting forth objections to the validity of any
     provision which the defendant is alleged to have violated or
     conspired to violate. The court in which the proceeding is
     pending shall grant such leave with respect to any objection
     which it finds is made in good faith and with respect to
     which it finds there is reasonable and substantial excuse
     for the defendant's failure to present such objection in an
     administrative proceeding before the city rent agency. Upon
     the filing of a petition pursuant to and within thirty days
     from the granting of such leave, the supreme court shall
     have jurisdiction to enjoin or set aside in whole or in part
     the provision of the regulation or order complained of or to
     dismiss the petition. The court may authorize the
     introduction of evidence, either to the city rent agency or
     directly to the court, in accordance with subdivision a of
     this section The provisions of subdivision b of this section
     shall be applicable with respect to any proceedings
     instituted in accordance with this subdivision.

d.   In any proceeding brought pursuant to subdivision ten of
     section one of the state enabling act or section 26-413 of
     this chapter involving an alleged violation of any provision
     of any such regulation or order, the court shall stay the
     proceeding:

     (1)  During the period within which a petition may be filed
          in the supreme court pursuant to leave granted under
          subdivision c of this section with respect to such
          provision;

     (2)  During the pendency of any protest properly filed
          under section 26-410 of this chapter prior to the
          institution of the proceeding under subdivision ten of
          section one of the state enabling act or section 26-413
          of this chapter, setting forth objections to the
          validity of such provision which the court finds to
          have been made in good faith; and

     (3)  During the pendency of any judicial proceeding
          instituted by the defendant under this section with
          respect to such protest or instituted by the defendant
          under subdivision c of this section with respect to
          such provision, and until the expiration of the time
          allowed in this section for the taking of further
          proceedings with respect thereto.

e.   Notwithstanding the provisions of subdivision d of this
     section, stays shall be granted thereunder in civil
     proceedings only after judgment and upon application made
     within five days after judgment. Notwithstanding the
     provisions of subdivision d of this section, in the case of
     a proceeding under paragraph (a) of subdivision ten of
     section one of the state enabling act or subdivision a of
     section 26-413 of this chapter, the court granting a stay
     under subdivision d of this section shall issue a temporary
     injunction or restraining order enjoining or restraining,
     during the period of the stay, violations by the defendant
     of any provision of the regulation or order involved in the
     proceeding. If any provision of a regulation or order is
     determined to be invalid by judgment of the supreme court
     which has become effective in accordance with subdivision b
     of this section, any proceeding pending in any court shall
     be dismissed, and any judgment in such proceeding vacated,
     to the extent that such proceeding or judgment is based upon
     violation of such provision. Except as provided in
     subdivisions c and d of this section and as heretofore
     provided in this subdivision e, the pendency of any protest
     under section 26-410 of this chapter before the city rent
     agency or judicial proceeding under this section, shall not
     be grounds for staying any proceeding brought pursuant to
     subdivision ten of section one of the state enabling act or
     section 26-413 of this chapter; nor, except as provided in
     this subdivision e, shall any retroactive effect be given to
     any judgment setting aside a provision of a regulation or
     order.

f.   The method prescribed herein for the judicial review of a
     regulation or order of the city rent agency shall be
     exclusive.

Added by Laws 1985, Ch. 907, § 1, eff. Sept. 1, 1986.