No Triple Damages Where DHCR Had Rent Information in Its Files

Facts: Tenant complained of a rent overcharge. The DHCR asked landlord to submit both an initial apartment registration form (RR-1), and proof it was sent to tenant. It also asked for a rent history. Landlord asked the DHCR for more time to submit the documents, but didn't respond to the DHCR's request until six months later. Landlord claimed that the Office of Rent Control had set the monthly rent at $406 in 1975---so tenant was paying less than the legal rent. The DRA set the initial rent at $319 as of April 1, 1980, and froze the rent at that level based on the landlord's failure to file and the initial apartment registration form. The DRA found that tenant had been overcharged, and awarded triple damages to tenant. Landlord appealed, and the DHCR ruled for tenant. Landlord appealed again. Court: The DHCR correctly set the monthly rent at $319 as of April 1, 1980, and found a rent overcharge. But, the triple damage award wasn't warranted. The DHCR could get the needed information to set the legal rent from its own files. Also, a finding of willfulness is improper because the rent tenant paid was considerably lower than the legal rent set by the Office of Rent Control.

Matter of Clinton Court Investors: NYLJ, p. 30, col. 3 (8/8/94) (Sup. Ct. NY; Feinberg, J)