No Triple Damages When Rent Overcharge Wasn't Willful

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $5,630, including interest. Tenant appealed and lost. Tenant claimed that the overcharge was willful and that triple damages should be applied. But the DHCR disagreed for several reasons. First, prior landlord made a good faith attempt to refund the full amount of the overcharge with interest that was due in 2013, three years before the DRA ruled on tenant's complaint. Second, landlord adjusted tenant's collectible rent in August 2013 and there was no further overcharge after that date. Third, the overcharge resulted from piercing the four-year base date to enforce a DHCR rent reduction order issued 14 years before tenant filed his complaint. Finally, prior landlord filed a rent restoration application in July 2013, before tenant complained of rent overcharge, showing that services were restored in 2004 and that tenant's rent was restored three years before the DRA ruled on the complaint.

Rogers: DHCR Adm. Rev. Docket No. EV410055RT (5/26/17) [5-pg. doc.]