No Triple Damages Based on Vague Settlement Agreement

LVT Number: 16408

Tenant complained of a rent overcharge. The DRA ruled for tenant but didn't order landlord to pay triple damages. Tenant appealed, claiming that the overcharge was willful and that landlord should be ordered to pay triple damages. The DHCR ruled against tenant. Landlord and tenant had signed a prior settlement agreement in court in which they agreed that the apartment was deregulated based on nonprimary residence of prior tenant. The agreement also gave tenant and prior tenant, as cotenant, a vacancy lease.

Tenant complained of a rent overcharge. The DRA ruled for tenant but didn't order landlord to pay triple damages. Tenant appealed, claiming that the overcharge was willful and that landlord should be ordered to pay triple damages. The DHCR ruled against tenant. Landlord and tenant had signed a prior settlement agreement in court in which they agreed that the apartment was deregulated based on nonprimary residence of prior tenant. The agreement also gave tenant and prior tenant, as cotenant, a vacancy lease. The agreement was vague as to whether tenant and cotenant were also considered nonprimary residents exempt from rent stabilization. Landlord could reasonably have believed the apartment was deregulated based on the settlement agreement. So the overcharge wasn't willful.

Vinagre/24th St. Holding Co., LLC: DHCR Admin. Rev. Dckt. No. QJ410140RT (12/12/02) [3-pg. doc.]

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