Tenant Rejected Landlord's Refund While Complaint Pending

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund over $32,000, including triple damages. Landlord appealed, claiming that the overcharge wasn't willful. The DHCR ruled for landlord and revoked the triple damages. Landlord had issued three checks to tenant to cover the overcharge refund, with interest, but tenant refused to accept them. The fact that landlord didn't tender the refund within the initial time afforded to answer the complaint didn't matter in this case. Landlord made a good faith attempt to refund the full amount including interest before the DRA's order was issued. Plus, the overcharge resulted from the piercing of the four-year rule to give effect to a rent reduction order issued in 1987. And the DRA's notice to landlord regarding the imposition of triple damages didn't refer to the 1987 rent reduction order.

Seashore Management: DHCR Adm. Rev. Docket No. BR210039RO (8/6/14) [3-pg. doc.]