Rent-Controlled Tenant Gets Triple Damages

Facts: In 1995, the DHCR ruled that landlord harassed tenants of several buildings he owned, and the DHCR froze rents until such time as it ruled that landlord was no longer harassing tenants. Landlord appealed this decision, but the court and appeals court ruled against him. Landlord later asked the DHCR to remove the harassment finding. The DHCR held a hearing and, based on testimony of 22 tenants, ruled against landlord in 2002. In 2004, landlord rented out an apartment to tenant in one of the buildings affected by the rent freeze order, at a monthly rent of $2,800. In late 2005, the DHCR sent tenant a letter advising him of the DHCR's rent freeze order. The DHCR's letter stated that the rent for tenant's apartment was frozen at the rent-controlled rent of $330. Tenant started paying landlord $330 per month instead of $2,800 per month. Landlord then sued to evict tenant for nonpayment of rent. Tenant claimed that landlord had collected a rent overcharge. Court: Tenant wins. The DHCR's 1995 order clearly barred landlord from collecting more than $330 per month for tenant's apartment. The later DHCR case and 2002 order also made it clear that landlord understood that the rent freeze remained in effect. Landlord therefore willfully overcharged tenant. The total rent overcharge, including triple damages, was over $137,000.

Mauro v. Choi: NYLJ, 4/12/06, p. 19, col. 1 (Civ. Ct. NY; Lebovits, J)