No Triple Damages Where Landlord Deregulated Apartment in Error

Tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $15,830, with interest. Landlord and tenant both appealed and lost. Tenant claimed that the overcharge was willful and triple damages were warranted. But the overcharge resulted from landlord’s mistaken belief that tenant’s apartment was unregulated. The building received J-51 tax benefits that would remain in effect until 2020. Landlord had relied on the DHCR’s long-held policy, prior to a contrary decision by New York’s highest court, that the apartment was subject to high-rent vacancy deregulation.

Kabaivanova/225 East 26th Street LLC: DHCR Adm. Rev. Docket Nos. DM410011RT, DM410015RO (5/13/15) [4-pg. doc.]