No Triple Damages for Overcharge Due to Mistaken Deregulation in J-51 Building

Rent-stabilized tenant complained of rent overcharge in 2018. The DRA ruled for tenant and ordered landlord to refund $7,413, including interest and triple damages. Landlord appealed and challenged the triple damage award because it had already refunded $3,365 to tenant in response to the complaint. The DHCR ruled for landlord. Landlord had mistakenly deregulated apartments in a J-51 building prior to the 2009 Court of Appeals decision in Roberts v. Tishman Speyer Properties LP. So the deregulation of tenant's apartment wasn't fraudulent and any resulting overcharge wasn't willful. And landlord refunded a significant portion of any overcharge to tenant while the complaint was pending. Triple damages were therefore revoked and the total due to tenant was $845.

EBD Associates, LLC: DHCR Adm. Rev. Docket No. JV410016RO (11/16/21)[3-pg. document]