No Triple Damages for Mistaken Collection of MCI Increase

LVT Number: 13571

(Decision submitted by Karen Schwartz-Sidrane of the Baldwin law firm of Pennisi, Daniels & Norelli, LLP, attorneys for the landlord.) Tenant complained of a rent overcharge. The DRA ruled for tenant, based on landlord's collection of an MCI rent increase while tenant's PAR challenging the increase was pending. The DRA also found that the overcharge was willful and imposed triple damages. Landlord appealed and won. The DRA's order permitting MCI increases contained no warning that if tenant filed a PAR, landlord couldn't collect retroactive MCI increases while the PAR was pending.

(Decision submitted by Karen Schwartz-Sidrane of the Baldwin law firm of Pennisi, Daniels & Norelli, LLP, attorneys for the landlord.) Tenant complained of a rent overcharge. The DRA ruled for tenant, based on landlord's collection of an MCI rent increase while tenant's PAR challenging the increase was pending. The DRA also found that the overcharge was willful and imposed triple damages. Landlord appealed and won. The DRA's order permitting MCI increases contained no warning that if tenant filed a PAR, landlord couldn't collect retroactive MCI increases while the PAR was pending. Tenant had paid the MCI back rent of $1,600 in one installment. When landlord received notice from the DRA in regard to the overcharge complaint that this would result in triple damages, landlord promptly refunded the overcharge. Under all of these circumstances, the overcharge couldn't be found to be willful. The triple damages were revoked.

Ragoo: DHCR Adm. Rev. Dckt. No. HJ610200RO (8/26/99) [3-pg. doc.]

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