New Landlord Proves Overcharge Wasn't Willful

Tenant complained of a rent overcharge. Landlord claimed that there was no overcharge because tenant paid a preferential rent on the base date that was legally discontinued. The DRA ruled for tenant, finding that there was no proof of preferential rent. Landlord was ordered to refund $11,600, including triple damages for willful rent overcharge. Landlord appealed, claiming that there was no willful overcharge. It bought the building in 2007, and tenant filed her overcharge complaint two weeks later. If there was any overcharge, it was done by prior landlord. Rent registrations indicated that there was a preferential rent, and there were two acknowledgements from tenant that her rent was preferential in the rent history records. Landlord also tried diligently to obtain rent history records from prior landlord after tenant filed her complaint, but was unsuccessful. The DHCR ruled for landlord. Landlord rebutted the presumption that the overcharge to tenant was willful. The overcharge refund was reduced to $4,200.

Rising Development-523 W 135 LLC: DHCR Adm. Rev. Docket No. VL410030RO (8/29/08) [3-pg. doc.]