Landlord Who Doesn't Prove Cost of IAIs Must Refund Triple Damages for Rent Overcharge

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. Tenant claimed rent overcharge. The court ruled for tenant and ordered landlord to refund $117,402, including triple damages for willful rent overcharge. Landlord appealed and lost. Landlord failed to prove the existence of individual apartment improvements (IAIs) to justify the rent increase from prior tenant's last rent of $908 to tenant's initial rent of $3,300. At trial, landlord didn't submit adequate documentation in support of its claimed IAIs or credible witness testimony establishing the nature and scope of the work done. Landlord claimed that it spent $153,000 but presented no itemized breakdown, and the cost appeared unreasonable. Since landlord failed to prove that the overcharge wasn't willful, triple damages were properly imposed.

Graham Court Owners Corp. v. Long: 64 Misc.3d 133(A), 2019 NY Slip Op 51083(U) (App. T. 1 Dept.; 7/2/19; Ling-Cohan, JP, Gonzalez, Cooper, JJ)