Landlord Didn't Cut Rent After Getting Reduced Service Order

Facts: Rent-stabilized tenant complained in 1988 of a reduction in services. In 1989, the DRA issued an order reducing tenant's rent. Landlord never reduced the rent and continued to bill tenant for the full amount. In 1995, the DHCR advised tenant that she should be paying the reduced rent. Tenant told landlord and began withholding rent. Landlord then sued to evict tenant for nonpayment of rent. Tenant claimed a willful rent overcharge and asked the court to rule without conducting a trial. The court ruled against tenant, and tenant appealed. Court: Tenant wins. Landlord knew about the rent reduction order and continued to collect the full rent from tenant. This was a willful overcharge. Tenant could get a refund of overcharges collected during the four years before she raised the claim in answer to the nonpayment petition, including two years of triple damages.

Hollis Realty Co. v. Glover: NYLJ, p. 29, col. 1 (1/13/99) (App. T. 2 Dept.; Kassoff, PJ, Aronin, Patterson, JJ)