Landlord Didn't Comply with Prior Overcharge Order

Facts: Prior tenant filed fair market rent appeal with the DHCR, challenging the apartment's first rent-stabilized rent. New tenant moved into apartment on August 1, 1995, while fair market rent appeal was still pending. On October 18, 1995, the DRA ruled for prior tenant and reduced the rent. Landlord didn't file a PAR and its request for reconsideration was denied. Landlord also didn't reduce new tenant's rent in compliance with the DRA's order. Tenant sued landlord in court, claiming a willful rent overcharge. Court: Tenant wins. The DRA's order became a final determination since landlord didn't appeal. Landlord was required to reduce new tenant's rent in accordance with the order. No trial was needed to award tenant a rent overcharge plus interest. A trial was required, however, to decide if the overcharge was willful and if tenant could get attorney's fees.

Ferrante v. 55 Spring St. Assocs., LP: NYLJ, p. 29, col. 4 (5/14/97) (Civ. Ct. NY; James, J)