Landlord Proved Installation of New Kitchen and Bathroom Appliances and Fixtures

Landlord sued to evict tenant for nonpayment of rent. Tenant's initial rent was $1,750 per month, and tenant owed two months' rent. Tenant claimed that landlord had willfully overcharged him $70,000. Landlord claimed that there was no rent overcharge because it was entitled to a 1/40th rent increase for individual apartment improvements it made before tenant moved in. The court ruled for landlord in part. Prior tenant moved out in early 2000. At the trial, landlord's witnesses credibly testified that kitchen and bathroom renovation was done before tenant moved in. The existing rooms were totally demolished and, except for the bathtub, all floorings, fixtures, and equipment were removed and replaced. Through testimony, receipts, and canceled checks, landlord showed that it installed new kitchen wall and base cabinets, along with custom countertops, sink and faucet, plumbing, electrical, ceramic tile floor, light fixture, and appliances. The bathroom installation included a new base cabinet, sink, faucet, mirrored medicine cabinet, shower body, light fixture, ceramic wall and floor tiles, and electrical work. The total cost was $27,000. The court disallowed $3,000 because landlord's contractor had done a similar renovation in the building for $24,000. That portion of the labor and demolition costs that included the removal and dumping of prior tenant's belongings was also disallowed. The court found that landlord proved $21,000 in 1/40th improvements. The total overcharge was $10,000. The court found that the overcharge was willful and ordered a refund of $30,000.

212 W. 22 Realty LLC v. Fogarty: NYLJ, 1/14/04, p. 18, col. 3 (Civ. Ct. NY; Hagler, J)