Landlord Had "Reason to Know" of Overcharge

Tenant complained of a rent overcharge. The DRA ruled for tenant and ordered a refund of $3,476, including triple damages for willful overcharge. Landlord appealed and lost. Landlord claimed that the overcharge wasn't willful and pointed out that he had given tenant a credit toward unpaid rent to offset the overcharge. Landlord claimed that he made a mistake about the amount of tenant's legal rent under some DHCR rent reduction orders. The DHCR ruled against landlord. Willfulness is presumed in overcharge cases and requires no worse mental state than having "reason to know" or being on notice that there is an overcharge. Landlord had received copies of the rent reduction orders and therefore had reason to know what the legal collectible rent was at all times thereafter.

750 Grand Concourse: DHCR Adm. Rev. Docket No. XC610031RO (5/15/09) [3-pg. doc.]