Application of Regina Decision Reduces Overcharge Finding by Over $30,000

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Tenant claimed rent overcharge. The court ruled for tenant in August 2019 and ordered landlord to refund $90,673, including triple damages.

After New York's highest court issued the Regina ruling in April 2020, landlord renewed a request for recalculation of the overcharge based on amended application of HSTPA provisions governing rent overcharge. The court ruled for landlord, and reduced the overcharge finding to $58,148.

There was indicia of a fraudulent scheme to deregulate the apartment in this case, given inconsistencies between registered rents and lease records, along with proof of apartment swapping, missing leases, an increase taken during a vacancy without any documented tenancy, missing deregulation riders, and riders attached to the first deregulated lease in prior leases that waived tenants' rights under rent stabilization. But tenant incorrectly argued that the apartment rent should be frozen at the $647 rate collected in 2006. When the base date rent is the result of a fraudulent scheme to deregulate an apartment, applying the default formula and freezing the rent on the base date is appropriate. The default rent in this case was $1,118. The rent must remain frozen until landlord properly registers this rent. 

Gold Rivka 2 LLC v. Rodriguez: Index No. 43271/2016, 2020 NY Misc. LEXIS 4195 (Civ. Ct. Bronx; 8/6/20; Bacdayan, J)