Landlord Didn't Make Good-Faith Settlement

Tenant complained of a rent overcharge. The DRA ruled for tenant, found that the overcharge was willful, and ordered landlord to refund $20,000, with triple damages. Landlord appealed. He said that he tried to settle the case in good faith with tenant and that there was no willful overcharge. The DHCR ruled against landlord. Landlord had offered to reduce tenant's rent from $600 to $537 and give a rent credit for past overcharges based on the reduced rent. The base date was May 1990, and prior tenant's rent was $354. Landlord didn't register the apartment in April 1991. This froze the rent at $354. The DRA also reduced the rent because of a reduction in services, effective Sept. 1, 1992. So the rent remained frozen. Landlord's settlement offer wasn't in good faith because the rent cut and refund offered by landlord wasn't for the amount of the legal rent. So triple damages were properly imposed.

Rose: DHCR Adm. Rev. Dckt. No. LE210101RO (5/30/01) [3-pg. doc.]