Blending issues between L&T and Small Claims Court

[NODEAL]

I am in the middle of a dispute in L&T Court with my landlord (LL). Amongst other things, the Small Claims Court (in a separate issue) may award me monies from the LL for return of a Security Depoit and also interset on that deposit.

In short, in L&T the LL seeks rent money from me based on a disputable (and challenged) Preferentail Rent for which a complaint is pending in DHCR.

Upon my next hearing in L&T Court, would it be reasonable for me to take the following position?:

“I am willing to pay the LL 90% of the owed base rent in order to offset the possible outcome of the Small Claims case in which it may be decided that the LL shall owe me money”.

[TenantNet]

The L&T court should not intermingle these issues on its own ... however the parties can come to a stip arrangement citing the outcome of one case determines the outcome of another case.

The Court should let DHCR come to it's decision.

If the case is about a deposit, that implies you're no longer in possession, which means if the L&T case started after you left, then Housing Court does not have jurisdiction.

If you started the other case after the Housing Court case started, why didn't the LL lawyer object?

[NODEAL]

Actually, I am still in possession of the apartment.

The building is a stabilized hotel. The LL must provide a first lease when collecting a security deposit (in accordance with DHCR materials). My LL collected the security deposit but never gave me a lease. So, I petitioned Small Claims to order him to return my deposit to me. This case which was heard is now pending.

Basically, my question was if I can use the anticipated award from Small Claims to slightly offset the current rent payments?

(It is a complete separate issue that Preferential Rent plays into this and I am not examining that angle here.)

[Cranky Tenant]

Shouldn't the return of any illegal security deposit normally be part of a counter claim in your housing court case?

[NODEAL]

I thought the same thing.
However, niether L&T Court nor DHCR litigate Security Deposit issues.
They refer you to Small Claims.