No Triple Damages Where Overcharge Resulted from Rent Reduction Order

Rent-stabilized tenant complained of rent overcharge. The DRO ruled for tenant and ordered landlord to refund $9,476, including interest. The overcharge was based on an outstanding rent reduction order that had frozen tenant’s collectible rent. Tenant appealed and lost. Tenant claimed that the overcharge was willful and that he should therefore be awarded triple damages. But, prior to a Court of Appeals ruling in Cintron v. Calegaro, the DHCR’s rulings on pre-base-date rent reduction orders had changed over time, and therefore it was appropriate not to assess triple damages where the only basis of an overcharge was the rent freeze resulting from a rent reduction order. Tenant also had received conflicting information from the DRIE program regarding what rent she should pay. Landlord also had filed an application to restore rent, and the 2001 rent reduction order was no longer in effect.

Martorell: DHCR Adm. Rev. Docket No. DV410042RT (3/10/16) [3-pg. doc.]