Delayed Overcharge Refund Didn't Overcome Presumption of Willfulness

Tenant complained of rent overcharge in 2014, claiming that landlord continued to collect rent increases after a prior rent reduction order froze tenant’s rent. The DRA ruled for tenant and ordered landlord to refund the overcharge with triple damages. Landlord appealed and lost. The total overcharge with triple damages was $29,000. Starting in March 2016, landlord made refunds totaling $15,000, leaving an amount due to tenant of $14,000. Landlord argued that it had refunded the overcharge with interest before the DRA ruled on the case. But landlord didn’t make the refund until almost two years after tenant filed his overcharge complaint and not until after the DRA sent a final notice of triple damages. Landlord also was aware of the rent reduction order by 2010 when it filed an application to restore rent. So landlord didn’t rebut the presumption of willfulness that results in triple damages.

CinSima Realty LLC: DHCR Adm. Rev. Docket No. ES610056RO (2/23/17) [2-pg. doc.]