Tenant Can't Get Interest on Overcharge Refunded as Rent Credit

May 31, 1993

LVT Number: 7037

(Decision submitted by Santo Golino of the Manhattan law firm of Kucker Kraus & Bruh, attorneys for the landlord.) Facts: Landlord sued to evict tenant for nonpayment of rent. Tenant hadn't paid rent since July 1986, based on a DHCR order finding a rent overcharge. Rather than pay tenant a lump-sum refund, landlord had given tenant a rent credit, so that tenant didn't have to pay monthly rent. Landlord claimed that the overcharge was now completely refunded. Tenant claimed that he was still entitled to interest on the overcharge amount. Court: Tenant loses.

(Decision submitted by Santo Golino of the Manhattan law firm of Kucker Kraus & Bruh, attorneys for the landlord.) Facts: Landlord sued to evict tenant for nonpayment of rent. Tenant hadn't paid rent since July 1986, based on a DHCR order finding a rent overcharge. Rather than pay tenant a lump-sum refund, landlord had given tenant a rent credit, so that tenant didn't have to pay monthly rent. Landlord claimed that the overcharge was now completely refunded. Tenant claimed that he was still entitled to interest on the overcharge amount. Court: Tenant loses. The DHCR's order calculated interest only on the overcharge due as of July 1986. Tenant never converted the DHCR's order into a judgment, so he had no legal basis to claim continuing interest due after that date.

Elk Investors v. Holmberg: NYLJ, p. 23, col. 3 (5/26/93) (Civ. Ct. NY; Scott, J)

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