Court Recalculates Rent Overcharge Findings Based on Default Formula

Thirteen tenants sued landlord for rent overcharge and fraudulent deregulation of apartments in their building. In 2021, The court ruled for a number of the tenants, finding rent overcharges subject to the default formula for calculation. Tenants then sought to reargue some of their claims, saying that the court had applied improper calculations. The court ruled for at least some of the tenants, removing the requirement that tenants' rent overcharge claims factor in "subsequent lawful increases and adjustments" to their respective apartments' base date rents, and directing that the rent overcharge claim of one of the tenants be calculated using a legal regulated rent for another apartment in the calculation. The court entered money judgments for six tenants in amounts ranging from $120,745 to $299,977, plus 9 percent interest. The calculation of attorneys fees for tenants was submitted to a Judicial Hearing Officer (JHO) for determination.

Aras v. B-U Realty Corp.: Index No. 161448/2014, 2022 NY Slip Op 34110(U)(Sup. Ct. NY; 12/6/22; d'Auguste, J)