KMWB Successfully Maintains MCI Increases After the Appellate Division Remands DHCR’s Order

Nativ Winiarsky recently successfully argued an appeal before the Appellate Division and reversed a Supreme Court decision denying an MCI increase. The Supreme Court action was an Article 78 proceeding brought by tenants seeking to reverse DHCR’s determination which had initially granted an MCI increase. The Supreme Court reversed the DHCR order that had granted the MCI increase finding that the DHCR had acted arbitrarily and capriciously in considering evidence never brought to the attention of the rent administrator. However, as a result of the arguments made by KMWB on appeal, the Appellate Division, First Department reversed the lower court’s order which had disallowed the MCI increase, and remanded the matter back to DHCR to consider the new evidence demonstrating the landlord’s entitlement to the MCI.