Inexperience No Excuse for Overcharge

May 31, 1997

LVT Number: 11529

Tenant complained of a rent overcharge. The DHCR ruled for tenant, finding that the overcharge was willful and imposing triple damages. Landlord appealed, claiming that the overcharge wasn't willful. Landlord claimed that due to its inexperience, it was misled by the advice of prior landlord that it could charge a fair market rent when prior tenant moved out. And landlord didn't receive full rent history from prior landlord. The court and appeals court ruled against landlord. Tenant's rent would have been unlawful even if landlord could charge fair market rent.

Tenant complained of a rent overcharge. The DHCR ruled for tenant, finding that the overcharge was willful and imposing triple damages. Landlord appealed, claiming that the overcharge wasn't willful. Landlord claimed that due to its inexperience, it was misled by the advice of prior landlord that it could charge a fair market rent when prior tenant moved out. And landlord didn't receive full rent history from prior landlord. The court and appeals court ruled against landlord. Tenant's rent would have been unlawful even if landlord could charge fair market rent. Inexperience and claimed unavailability of rent history were no excuse.

S.E. & K. Corp. v. DHCR: NYLJ, p. 27, col. 5 (5/5/97) (App. Div. 1 Dept.; Sullivan, JP, Rosenberger, Wallach, Rubin, JJ)

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