Refund Offered Was Incomplete

LVT Number: #20916

Tenant complained of a rent overcharge. The DRA ruled for tenant and ordered landlord to refund $6,500, including triple damages. Landlord appealed, claiming that it refunded the overcharge to tenant before the DRA issued its order and therefore no willful overcharge finding was warranted. The DHCR ruled against landlord. Landlord took action to mitigate its damages long after it answered tenant's complaint. And landlord didn't give tenant a full refund plus interest. Landlord merely gave tenant a credit toward future rent that was less than the amount of the overcharge refund due.

Tenant complained of a rent overcharge. The DRA ruled for tenant and ordered landlord to refund $6,500, including triple damages. Landlord appealed, claiming that it refunded the overcharge to tenant before the DRA issued its order and therefore no willful overcharge finding was warranted. The DHCR ruled against landlord. Landlord took action to mitigate its damages long after it answered tenant's complaint. And landlord didn't give tenant a full refund plus interest. Landlord merely gave tenant a credit toward future rent that was less than the amount of the overcharge refund due. This was insufficient to overcome the presumption of willful overcharge and imposition of triple damages.

Mayzick/Terlecki: DHCR Adm. Rev. Docket Nos. WE210024RT, WE210041RO (9/5/08) [4-pg. doc.]

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