New Landlord Not Liable for Triple Damages

(Decision submitted by Patrick K. Munson of the Manhattan law firm of Kucker Kraus & Bruh, LLP, attorneys for the landlord.) Facts: Tenant complained of a rent overcharge. Prior landlord sold the building to landlord shortly before the DRA ruled for tenant. The DRA ruled that new landlord was responsible for the willful rent overcharge, including triple damages. New landlord appealed, arguing that it shouldn't be responsible for refunding any of the overcharge because it bought the building after tenant vacated and so never collected rent from tenant. Court: Landlord wins, in part. Under the Rent Stabilization Law, new landlord is responsible for refunding rent overcharges collected by prior landlord. Landlord can and should determine if it has potential overcharge liability before it buys a building. But new landlord played no part in the illusory tenancy that led to the rent overcharge finding, and tenant had moved out by the time landlord, bought the building. There was no ''willful'' overcharge by new landlord, and it would be unreasonable to make her pay any of the triple damages.

Helfand v. DHCR: Index No. 121651/98 (5/3/99) (Sup. Ct. NY; Lippmann, J) [11-pg. doc.]