Triple Damages Imposed for Rent Overcharge

Rent-stabilized tenant complained of a rent overcharge. The DHCR ruled against tenant, finding that landlord was entitled to terminate tenant's preferential rent. Tenant appealed. The court found the DHCR's decision irrational. The case was sent back to the DHCR for reconsideration. The DHCR then ruled for tenant, finding that tenant's 1994 lease terms barred discontinuation of the preferential rent. The DHCR found that the overcharge was willful and assessed triple damages. Landlord appealed and lost. Landlord claimed that it relied on a change in the law and that there was no willful overcharge. But no higher or legal or lower preferential rents were established in accordance with the law. Landlord failed to rebut the presumption that the overcharge was willful, and the DHCR's decision had a rational basis.

10th St. Associates LLC v. DHCR: Index No. 108314/11, NYLJ No. 1202546166044 (Sup. Ct. NY; 3/9/12; Schlesinger, J)