Court Finds No Fraud in Landlord’s Rent Calculation

Landlord sued to evict rent-stabilized tenant for nonpayment of rent at $3,081 per month. Tenant claimed fraud and willful rent overcharge. The court found no fraud and ruled that the base rent date was May 26, 2011, four years before tenant raised her overcharge claim. Tenant relied on rent increases in 2006 and 2007, which were above the guidelines increases. And while landlord may have incorrectly calculated MCI rent increases, there was no indication that any mistake was intended to remove the apartment from rent regulation. Instead, the “knotted history” of MCIs was a factor preventing the easy calculation of the legal rent. Landlord’s improper rent registrations between 2012 and 2014 also didn’t support a fraud claim. While the original registrations were improper and listed inflated amounts, landlord never sought to collect these amounts, and later amended the registrations. 

B-U Realty Corp. v. Kiebert-Boss: 50 Misc.4d 1220(A), 2016 NY Slip Op 50180(U) (Civ. Ct. NY; 2/9/16; Kraus, J)