Landlord Must Refund Tenant Over $800,000 in Rent Overcharges

LVT Number: #29945

Tenant sued landlord, claiming rent overcharge and improper deregulation of a rent-stabilized apartment. The court ruled for tenant. The apartment had been last registered as rent stabilized in 2002 at a rent of $1,222 per month. Landlord claimed that it made individual apartment improvements (IAIs) costing $31,000 during a vacancy and that the apartment became permanently exempt from rent stabilization in 2003 based on high-rent vacancy. Tenant disputed the IAIs and landlord presented no proof that they were done.

Tenant sued landlord, claiming rent overcharge and improper deregulation of a rent-stabilized apartment. The court ruled for tenant. The apartment had been last registered as rent stabilized in 2002 at a rent of $1,222 per month. Landlord claimed that it made individual apartment improvements (IAIs) costing $31,000 during a vacancy and that the apartment became permanently exempt from rent stabilization in 2003 based on high-rent vacancy. Tenant disputed the IAIs and landlord presented no proof that they were done. The court directed landlord to refund $818,164 to tenant, including punitive damages. The court also awarded tenant attorney's fees and directed landlord to give tenant a rent-stabilized lease.

Rossman v. Windermere Owners LLC: Index No. 108350/2011, NYLJ No. 1546936202 (Sup. Ct. NY; 1/4/19; Nervo, J)