Tenant Entitled to Interest on Overcharge Award

Tenant filed a fair market rent appeal, claiming that the first rent-stabilized rent that landlord charged for his apartment was too high. The DHCR ruled for tenant and ordered landlord to refund $20,000 plus interest. Landlord appealed and lost. Tenant then got a judgment against landlord. Landlord paid tenant the $20,000 but still refused to pay any interest. Tenant sued landlord for the interest. The court ruled for tenant. Tenant was entitled to payment of interest accrued up until the time he got the judgment. The court also ordered landlord to pay tenant's attorney's fees for having to bring the court case to collect the interest payment. There was an implied agreement in tenant's lease that landlord should charge the legal rent and that if landlord broke that agreement, tenant could get attorney's fees in any court case to enforce that agreement.

Paganuzzi v. Primrose Mgmt. Co.: NYLJ, p. 30, col. 5 (5/12/99) (Sup. Ct. NY; Bransten, J)