No Prejudgment Interest Imposed Against New Landlord

LVT Number: 14600

Tenant complained of a rent overcharge. The DHCR ruled for tenant. Tenant then sued landlord for the overcharge refund. The court ruled against tenant in part and limited the amount of interest on the refund. Tenant appealed and lost. Prior landlord didn't have to pay tenant because he no longer owned the building when the DHCR order was issued.

Tenant complained of a rent overcharge. The DHCR ruled for tenant. Tenant then sued landlord for the overcharge refund. The court ruled against tenant in part and limited the amount of interest on the refund. Tenant appealed and lost. Prior landlord didn't have to pay tenant because he no longer owned the building when the DHCR order was issued. Since the DHCR order gave new landlord 60 days to refund the overcharge and didn't state that interest on the refund was due, the lower court properly ruled that prejudgment interest on the refund wouldn't begin until 61 days after the DHCR order was issued.

Weinstein v. 241 E. 58 Corp.: NYLJ, 11/2/00, p. 27, col. 2 (App. Div.1 Dept.; Sullivan, PJ, Rosenberger, Ellerin, Wallach, Rubin, JJ)