Court Excuses Tenant's Overcharge of Subtenant

January 1, 2009

LVT Number: #20948

Landlord sued to evict rent-stabilized tenant for rent gouging. Landlord claimed that tenant overcharge subtenant. The court ruled against tenant. Tenant appealed and won. Tenant paid $425 per month in rent, and charged his subtenant $1,625 per month. But subtenant stayed for only five months while tenant temporarily stayed in Minnesota. Tenant and subtenant resolved any dispute about an overcharge during the first month of the subtenancy, and tenant collected no further rent from subtenant. Tenant in fact broached the subject when he discovered that the rent he was charging was unlawful.

Landlord sued to evict rent-stabilized tenant for rent gouging. Landlord claimed that tenant overcharge subtenant. The court ruled against tenant. Tenant appealed and won. Tenant paid $425 per month in rent, and charged his subtenant $1,625 per month. But subtenant stayed for only five months while tenant temporarily stayed in Minnesota. Tenant and subtenant resolved any dispute about an overcharge during the first month of the subtenancy, and tenant collected no further rent from subtenant. Tenant in fact broached the subject when he discovered that the rent he was charging was unlawful. Under the circumstances, evicting tenant would be too harsh a penalty.

Cambridge Development, LLC v. Staysna: NYLJ, 12/31/08, p. 35, col. 1 (App. T. 1 Dept.;Schoenfeld, Heitler, JJ, McKeon, PJ dissenting in part)

Topics

More like this