Landlord Must Pay Triple Damages for Prior Landlord's Overcharge

LVT Number: 14239

Tenant complained of a rent overcharge. The DHCR ruled for tenant and found that the overcharge was willful. The DHCR ordered landlord to pay triple damages. Landlord appealed, claiming that prior landlord had collected the entire overcharge. So landlord couldn't have willfully overcharged tenant and shouldn't have to pay the triple damages portion of the overcharge amount to tenant. The court ruled against landlord.

Tenant complained of a rent overcharge. The DHCR ruled for tenant and found that the overcharge was willful. The DHCR ordered landlord to pay triple damages. Landlord appealed, claiming that prior landlord had collected the entire overcharge. So landlord couldn't have willfully overcharged tenant and shouldn't have to pay the triple damages portion of the overcharge amount to tenant. The court ruled against landlord. Landlord didn't have to pay the triple damages because of its own actions, but to prevent landlords generally from avoiding liability for triple damages by selling buildings to avoid payment.

500 West End Ave. Owners LP v. DHCR: NYLJ, 6/21/00, p. 29, col. 5 (Sup. Ct. NY; Atlas, J)