Overcharge Based on Incorrect Lease Renewal Lease Wasn't Willful

July 25, 2016

LVT Number: #27109

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $5,000, including triple damages. Landlord appealed and won. Landlord claimed that triple damages for willful rent overcharge shouldn’t apply in this case. The DHCR agreed. The overcharge resulted from one mistake--landlord offered tenant a renewal lease that commenced on Sept. 1, 2009, instead of Nov. 1, 2009. Otherwise, all rent increases were legal, and landlord promptly corrected its error upon discovery. The total refund was reduced to $2,300, including interest.

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $5,000, including triple damages. Landlord appealed and won. Landlord claimed that triple damages for willful rent overcharge shouldn’t apply in this case. The DHCR agreed. The overcharge resulted from one mistake--landlord offered tenant a renewal lease that commenced on Sept. 1, 2009, instead of Nov. 1, 2009. Otherwise, all rent increases were legal, and landlord promptly corrected its error upon discovery. The total refund was reduced to $2,300, including interest.

 

East 53rd Realty, LLC: DHCR Adm. Rev. Docket No. DX210035RO (5/17/16) [3-pg. doc.]

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