Tenant Gets Triple Damages

Facts: Tenant moved into rent-stabilized apartment in 1985. In early 1988, the DRA found a rent overcharge in response to prior tenant's rent overcharge complaint. Tenant then filed her own overcharge complaint because landlord didn't reduce her rent. The DHCR ultimately ruled for tenant, and ordered landlord to pay tenant triple damages for willful overcharge. Landlord appealed, claiming that the overcharge wasn't willful. Landlord bought the building in 1986 and relied on prior owner's records. These records didn't indicate any overcharge. Court: Landlord loses. Landlord was obligated to inspect rental records and charge tenant a lawful rent. And landlord was aware of the DRA's order on prior tenant's complaint. Tenant made explicit reference to the prior order in her complaint. And that prior order was issued over a year after landlord bought the building. Landlord had notice of the prior order and did nothing to reduce tenant's rent while her complaint was pending.

Pembroke Square Association v. Aponte: NYLJ, p. 25, col. 5 (3/2/94) (Sup. Ct. Queens; Milano, J)