Landlord Not Responsible for Tenant's Overcharge of Subtenant

August 9, 2012

LVT Number: #24271

Subtenant complained that he had been overcharged by rent-stabilized tenant. The DRA ruled for subtenant and ordered tenant to refund $133,500 including triple damages for willful overcharge. Subtenant appealed, claiming that landlord, tenant's estate, and tenant's wife also should be held responsible since they were involved in the overcharge. The DHCR ruled for tenant in part and reopened the case. There was no proof that landlord profited from tenant's overcharge of subtenant. Only tenant was responsible. But tenant's wife may be responsible.

Subtenant complained that he had been overcharged by rent-stabilized tenant. The DRA ruled for subtenant and ordered tenant to refund $133,500 including triple damages for willful overcharge. Subtenant appealed, claiming that landlord, tenant's estate, and tenant's wife also should be held responsible since they were involved in the overcharge. The DHCR ruled for tenant in part and reopened the case. There was no proof that landlord profited from tenant's overcharge of subtenant. Only tenant was responsible. But tenant's wife may be responsible. The DRA must do more fact-finding.

Lombardo: DHCR Adm. Rev. Docket No. YJ410033RT (4/19/12) [2-pg. doc.]

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