DHCR Properly Applied Triple Damages Rule

Facts: Tenant complained of a rent overcharge. The DHCR ruled for tenant, and found that a portion of the overcharge was willful. The DHCR ordered landlord to refund over $30,000 to tenant, which included the triple damages, and landlord appealed. Court: Landlord loses. The DHCR's decision was rational. The DHCR's Policy Statement 89-2 explains that triple damages should be imposed when landlord doesn't prove lack of willfulness. The DHCR didn't award triple damages for that portion of the rent overcharge that resulted from landlord's compounding of guideline increases within the same guideline year. This is considered a hypertechnical error. And landlord didn't object to the DHCR's conversion of tenant's complaint from a fair market rent appeal to a rent overcharge proceeding when the matter was before the DHCR. Landlord couldn't raise this issue for the first time before the court.

Matter of Two Lincoln Square Associates: NYLJ, p. 26, col. 4 (3/18/93) (App. Div. 1 Dept.; Sullivan, JP, Rosenberger, Kupferman, Asch, JJ)