No Triple Damages for Overcharge Caused by Computer Error

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant and ordered landlord to refund $36,000, including triple damages. Landlord appealed, claiming that the overcharge wasn't willful. Landlord had submitted to the DRA its managing agent's sworn statement of inadvertent overcharge. In 2006, landlord transferred all its leasing data to a new computer system and accidentally changed tenant's lease type from rent stabilized to market rent. The DHCR ruled for landlord and revoked the triple damages, finding that landlord relied on its new computer software system to issue tenant's leases and calculate rents. The overcharge was reduced to $18,000.

Side Kick Ridge Associates LLC: DHCR Adm. Rev. Docket No. ZB410044RO (8/8/11) [3-pg. doc.]