Triple Damages Imposed for Landlord's Improper Collection of Legal Fees

Rent-stabilized tenant complained to the DHCR of rent overcharge because landlord charged to tenant, and tenant paid, legal fees in the amount of $354. The DRA ruled for tenant and found that tenant was entitled to a refund of this overcharge plus interest. Tenant appealed, seeking imposition of triple damages against landlord for willful overcharge. The DHCR ruled for tenant. Legal fees can be collected from a tenant only if ordered by a judge in a court of competent jurisdiction or by the DHCR. Landlord argued that there was no willful overcharge and that, while its initial refusal to refund the legal fees to tenant was a mistake, it had refunded the legal fees to tenant after tenant filed the overcharge complaint. The DHCR found that landlord had not rebutted the presumption of willful overcharge and that the DRA correctly imposed triple damages.

Poretz: DHCR Adm. Rev. Docket No. MU410020RT (3/4/25)[2-pg. document]