No Triple Damages for Tenant Under Interim Lease

April 1, 1994

LVT Number: 8703

Tenant complained of a rent overcharge. The DHCR ruled for tenant, finding that landlord had willfully overcharged tenant. Landlord appealed. The court upheld the DHCR's ruling, finding it reasonable. Landlord appealed again. The appeals court ruled for landlord in part. Tenant was under an interim lease at the time of the overcharge. The building was undergoing a co-op conversion. As long as tenant was an interim lessee and not a proprietary lessee of a converted co-op apartment, tenant was subject to rent stabilization.

Tenant complained of a rent overcharge. The DHCR ruled for tenant, finding that landlord had willfully overcharged tenant. Landlord appealed. The court upheld the DHCR's ruling, finding it reasonable. Landlord appealed again. The appeals court ruled for landlord in part. Tenant was under an interim lease at the time of the overcharge. The building was undergoing a co-op conversion. As long as tenant was an interim lessee and not a proprietary lessee of a converted co-op apartment, tenant was subject to rent stabilization. But there were facts in the case showing that the overcharge wasn't willful. The part of the DHCR's order directing landlord to pay tenant triple damages was revoked.

Matter of Mott: NYLJ, p. 31, col. 3 (3/31/94) (App. Div. 1 Dept.; Ellerin, JP, Wallach, Kupferman, Rubin, Williams, JJ)

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