Court Properly Awarded Damages Based on Landlord's Harassment of Tenants

Tenants sued landlord in an HP enforcement proceeding, claiming harassment. The trial court ruled for tenants. Landlord appealed and lost. There was ample testimonial and documentary proof supporting the court's finding that landlord harassed building tenants by repeatedly interrupting essential building services.

Landlord denied heat and hot water, demanded payment of illegal surcharges, posted threatening and offensive notices in the building's common areas, berated tenants for contacting code enforcement agencies, and threatened tenants based on marital status or alienage.

The appeals court upheld the lower court's award of compensatory and punitive damages. The court appropriately calculated the award of compensatory damages, in part, as a percentage of the rent reserved in the leases. And the $4,500 punitive damages awarded was a reasonable exercise of the court's discretion, in light of landlord's longstanding and egregious conduct. The trial court also properly found that a named individual was a proper party since she was an officer of the corporate entity landlord and managed the building. Therefore, she was "directly or indirectly in control" of the building and, by definition, an "owner."

Leung v. Zi Chang Realty Corp.: Index No. 570049/21, 2022 NY Slip Op 50034(U), NYLJ 1/26/22, p. 18, col 1 (App. T. 1 Dept.; 1/21/22; Edmead, PJ, McShan, Silvera, JJ)