Tenant Granted Prejudgment Interest on Triple Damage Award

Facts: Rent-stabilized tenant complained to the DHCR of a rent overcharge. Landlord didn't produce the requested rent-history records. In 1989, the DRA ruled for tenant, found that the overcharge was willful, and imposed triple damages. The DRA ordered landlord to pay tenant over $81,000. Landlord appealed. The DHCR ruled against landlord in 1997. The DHCR also ruled that tenant was entitled to interest on the overcharge award from the date of the DRA's decision to the date of the DHCR ruling. Landlord challenged this ruling in a court case, claiming that it was arbitrary and unreasonable. The court ruled against landlord in 1998. Landlord filed a notice of appeal but ultimately didn't appeal the court's decision. In 2001, the DHCR notified tenant that the decision was final and advised tenant that he could collect the overcharge by withholding monthly rent payments or by getting a judgment by filing a notice with the County Clerk. Tenant no longer lived in the apartment, and filed the judgment against landlord in 2002. The County Clerk calculated prejudgment interest on the $81,000 overcharge award. With interest, the judgment totaled $172,000. Landlord asked the court to vacate the judgment. Landlord claimed that tenant waited too long to enter the judgment and that tenant wasn't entitled to prejudgment interest on the overcharge because he had been awarded triple damages. The court ruled for landlord in part, finding that the DHCR ruling permitted interest only for the period between the DRA's decision and the DHCR's decision. Landlord appealed. The appeals court ruled that tenant was entitled to prejudgment interest for the period after the DHCR's ruling. Landlord was given permission to appeal to the Court of Appeals. Court: Landlord loses. The Rent Stabilization Code authorizes an award by the DRA of either triple damages or interest on an overcharge claim. The Rent Stabilization Code doesn't bar imposition of prejudgment interest on the overcharge amount, whether with triple damages or with interest, determined by the DRA. And the Rent Stabilization Law authorizes prejudgment interest equal to that imposed in a civil action. And tenant didn't delay unreasonably. He waited only until instructed by the DHCR that there was no further appeal of its decision.

Mohassel v. Fenwick: NYLJ, 6/17/05, p. 19, col. 5 (Ct. App.; Graffeo, PJ, Kaye, GB Smith, Ciparick, Rosenblatt, Read, RS Smith, JJ)