Landlord Ordered to Refund $93,000 Overcharge

September 26, 2014

LVT Number: #25765

Rent-stabilized tenant sued landlord in December 2008 for rent overcharge. A prior landlord had sold the building in 1998 and, by agreement, received a rent-stabilized lease for the apartment at a lifetime rent of $258 per month. She died in 2005, and tenant moved into the apartment in 2006 under a rent-stabilized lease at a rent of $1,400 per month. Landlord argued that the complaining tenant was actually the first rent-stabilized tenant of the apartment. Since prior tenant had a life estate, she wasn't actually rent stabilized.

Rent-stabilized tenant sued landlord in December 2008 for rent overcharge. A prior landlord had sold the building in 1998 and, by agreement, received a rent-stabilized lease for the apartment at a lifetime rent of $258 per month. She died in 2005, and tenant moved into the apartment in 2006 under a rent-stabilized lease at a rent of $1,400 per month. Landlord argued that the complaining tenant was actually the first rent-stabilized tenant of the apartment. Since prior tenant had a life estate, she wasn't actually rent stabilized. The court ruled for tenant, finding that prior tenant was rent stabilized and that tenant had been overcharged. The court ordered landlord to refund $93,000, but denied any triple damages, finding no willful overcharge.

Zabolotsky v. Morningside Realty LLC: Index No. 32439/08, NYLJ No. 1202666387092 (Sup. Ct. Kings; 8/18/14; Schmidt, J)

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