No Interest on Fair Market Rent Appeal Award

September 8, 2012

LVT Number: #24332

Rent-stabilized tenant filed a fair market rent appeal. The DHCR ruled for tenant, reduced tenant's initial stabilized rent, and ordered landlord to refund excess rent paid. Tenant then sued landlord for prejudgment interest on the money award after landlord failed to pay and tenant withheld rent totaling the amount due. The court ruled against tenant. Unlike rent overcharge proceedings, the DHCR can't award triple damages or interest in fair market rent appeal cases, and the DHCR's order didn't provide for any interest payment.

Rent-stabilized tenant filed a fair market rent appeal. The DHCR ruled for tenant, reduced tenant's initial stabilized rent, and ordered landlord to refund excess rent paid. Tenant then sued landlord for prejudgment interest on the money award after landlord failed to pay and tenant withheld rent totaling the amount due. The court ruled against tenant. Unlike rent overcharge proceedings, the DHCR can't award triple damages or interest in fair market rent appeal cases, and the DHCR's order didn't provide for any interest payment. And tenant didn't have to sue landlord to recover the rent refund due since he withheld rent instead.

Eisner v. M & E Rubin, LLC: Index No. 28517/06 (Sup. Ct. Queens; 8/13/12; Butler, J) [2-pg. doc.]

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