The base Legal Rent

[Allaphil]

Hi Everyone,
We won Rent Overcharge case in Supreme Court. To calculate rent overcharge the Judge determined the base Legal Rent under the RSL by referencing the monthly rent charged for the subject apartment four years prior to the filing of an overcharge complaint - in our case the Legal Rent was established as $258. Because that additional motions was filled by our attorney and LL attorney, the Judge suggested to go in the Stipulation of Settlement to escape the appeal. The Stipulation that we signed (we were mislead on the many issues and now trying to vacate it), was describing our new Rent Stabilized Lease with the Preferential Rent for the life of tenancy. The starting Legal Rent of our Lease was identified as $1200 instead of $258, and the Preferential Rent was $600 ( If to use $258 as our Starting Legal Rent - the Preferential Rent idea was a nonsense at all, and they come up with the idea to change the starting Legal Rent to $1200).

My question is: was it legal to use different numbers ($1200) as our starting Legal Regulated Rent in the Stipulation even it was determined previously by RS Law and ordered by the Judge that our starting Legal Rent is $258? At the time of signing the Stipulation it was nothing that could legally increase our starting Legal Rent - no vacancy, no RGB increases, no improvements, nothing - the numbers just come from "the sky' to benefit our landlord for his future registration with DCHR.
In reality, I think, that it was an attempt to change the law regulating the Legal Rent calculation in the private stipulation, even signed by Judge. And only the State Legislature could change the law.

Am I right and is it the ground to vacate the stipulation? Thank you for any of your suggestion and help.

[TenantNet]

Congrats. Did you bring the case in Supreme Court, or did you win at DHCR and LL appealed in A78 to Supreme?

Who is/was your attorney? Can we see the decision? You can send it via Private Mail on the forum, or by email to tenant -at- tenant.net. This sounds a bit too complicated to offer an opinion without really looking at the decision.

[BubbaJoe123]

The description is a bit confusing, but it sounds like the underlying deal in the stip (whether explicitly stated or not) was that you'd get a $600 rent for as long as you're a tenant and the landlord would forego the appeal, but, in exchange, you wouldn't object to setting the legal rent higher, so that, for future tenants, the landlord would be able to charge a higher rent.

You say you're trying to have the stip overturned - does your lawyer agree with this move? Is he/she still your lawyer?

[Allaphil]

Sorry for a delayed reply. You understand correctly - the underlying deal in the stip, and it was explicitly stated, that starting Legal Rent will be $1200 and we'd get a $600 Preferential rent for as long as we're a tenant.
Even it sounds as a good deal "preferential lease for a life of tenancy" we need to vacate this stip, which includes other statements to which we were not agreed and not informed of and which absolutely make our winning deal "non winning at all". Unfortunately I can't go more in details because it is very complicated to describe all mess and harm that "put on record" unsigned by us and by Judge, but considered to be legal, because recorded by 2 attorneys in Judge's chamber, and not entered in the court system stip can do. Also the case is continue to be active in 2 courts.
I just asking your suggestion on my new research, which make me think that, from the beginning, the Legal Rent CAN NOT be the outcome for the agreement between landlord and the tenant to made it whatever they agree to and put it in the stip (other wise why not to put Legal Rent $2500 to deregulate the future tenants!!!). I hope to be right to use it to prove that it is not in the tenant and landlord jurisdiction to made an agreement on the amount of Legal Rent and then put it in the stipulation, and then be able to vacate the stip.
Any suggestions? Thank you in advance for any consultation.
p.s.our former attorney is very knowledgeable, but he is very manipulative and dishonest. Not recommended.
I started all this "saga" from Tenant.net and appreciated any previous comments and suggestions. After many years of involvement with this case and if anybody need it I will try to answer general questions about rent overcharge according to my experience. Stip is not considered

[TenantNet]

Again, you're being obtuse about almost everything here. We can't give you an opinion without understanding what has happened. That's why we asked to see the decision. If you don't want to share it with us (either on the public forum or privately), that's OK. I'd suggest you get an opinion from another attorney.

[Sky]

I agree it's unclear.
It's unclear what exactly you have agreed to in the stip and how you arrived at your understanding of the figures.

I am not an attorney.
My take is that one can agree in a stip to execute a renewal lease with the LL on DHCR's official form and that the LL will register the rent of the apartment at $XXX, with a preferential rent of $YYY. This does not meant that one agrees that the amount the LL registers with DHCR is indeed the actual legal rent ... one is merely agreeing that the LL is going to register the rent at $XXX and charge preferential $YYY.

For example,'Respondent acknowledges that the Landlord shall be entitled to register both the legal and preferential rents along with any other increases allowed by law. Nothing herein shall be construed as an agreement by Tenant that the amount registered as the “legal” rent is, in fact, lawful'


One can have additional protections in the stip that would preserve one's ability to challenge the legal registered rent such as, in the event that the LL demanded rent in excess of the stip agreement. To protect against the latter, one could have wording granting one the right to challenge the legal registered rent in the event either party breeches the stip, 'notwithstanding the passage of time, notwithstanding the expiration of any statute of limitations, notwithstanding any legal rule limiting the records that may be considered in calculating the legal rent, notwithstanding the provisions of any prior lease for the Apartment, and notwithstanding any statement that may be contained in the rent registrations filed with the New York State Division of Housing and Community Renewal by Landlord or its predecessors.'

So you could sign a stip with both parties agreeing that the LL will register the rent and preferential rent; and if the LL tries to screw you down the road for more than the $600 preferential rent he's agreed to, you protect and preserve your right to challenge the legal registered rent at any time.