Landlord Accuses Tenant of Rent Gouging and Profiteering

January 1, 2003

LVT Number: 16301

Facts: Rent-stabilized tenant paid $375 per month in rent. Tenant charged roommate $700 per month. Roommate complained to landlord, who sued to evict tenant. The case was settled. The roommate moved out and tenant refunded $4,000 in rent overcharges to roommate. Shortly after, landlord sued again to evict tenant for rent gouging and profiteering, in violation of Rent Stabilization Code Section 2525.7(b). Landlord said the offense wasn't correctable. Court: Landlord loses. Because tenant refunded the overcharge to roommate, there was no profiteering.

Facts: Rent-stabilized tenant paid $375 per month in rent. Tenant charged roommate $700 per month. Roommate complained to landlord, who sued to evict tenant. The case was settled. The roommate moved out and tenant refunded $4,000 in rent overcharges to roommate. Shortly after, landlord sued again to evict tenant for rent gouging and profiteering, in violation of Rent Stabilization Code Section 2525.7(b). Landlord said the offense wasn't correctable. Court: Landlord loses. Because tenant refunded the overcharge to roommate, there was no profiteering. And there was no rent gouging, a criminal offense, since tenant didn't promise to give roommate a lease in exchange for paying the illegal rent.

L.E.S.P.M.H.A. Inc. v. Nunez: NYLJ, 12/18/02, p. 23, col. 5 (Civ. Ct. NY; Cavallo, J)

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