No Triple Damages Where Landlord Mistakenly Charged First Rent

Tenant complained of a rent overcharge. Tenant claimed that his three-room apartment had been carved out of a prior six-room apartment and that landlord wouldn't provide a rent history. Landlord claimed that tenant's apartment was newly created, therefore tenant's rent was the first lawful rent. The DRA ruled for tenant and reduced his rent by dividing the amount of the prior apartment's rent in two. The DRA also found the overcharge to be willful and ordered landlord to pay triple damages. Landlord appealed. The DHCR revoked the triple damages only. Landlord had shown no proof that it had obtained a new certificate of occupancy after subdividing the old apartment. Therefore landlord couldn't benefit from the rule concerning newly created apartments. The subdivision may be a building violation. But since the prior apartment was, in fact, subdivided, the resulting overcharge shouldn't be considered willful.

Wynfame Realty Co.: DHCR Adm. Rev. Dckt. No. DE-210216-RO (4/4/95) [3-page document]