No Triple Damages for Overcharge Collected by Prior Landlord

June 30, 1998

LVT Number: 12471

Landlord sued to evict tenant for nonpayment of rent. Tenant claimed landlord had collected a rent overcharge. The court ruled for tenant and ordered landlord to refund $20,000, which included triple damages. Landlord appealed, claiming that it shouldn't have to pay triple damages for prior landlord's overcharge. The appeals court ruled for landlord. The rent stabilization law doesn't specifically state that new landlords are responsible for willful rent overcharge by prior landlords. Triple damages are designed to punish a landlord who has willfully overcharged tenant.

Landlord sued to evict tenant for nonpayment of rent. Tenant claimed landlord had collected a rent overcharge. The court ruled for tenant and ordered landlord to refund $20,000, which included triple damages. Landlord appealed, claiming that it shouldn't have to pay triple damages for prior landlord's overcharge. The appeals court ruled for landlord. The rent stabilization law doesn't specifically state that new landlords are responsible for willful rent overcharge by prior landlords. Triple damages are designed to punish a landlord who has willfully overcharged tenant. They should only be awarded against whoever committed the offense. Whether current landlord was responsible for triple damages on that portion of the overcharges it collected was a fact question that would have to be decided at trial.

Heights Assocs. v. Bautista: NYLJ, p. 30, col. 1 (6/29/98) (App. T. 2 Dept.; Scholnick, PJ, Chetta, Patterson, JJ)

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