Tenants Who Waive Triple Damages Request Can Bring Class Action

Thirteen tenants sued landlord, claiming unlawful deregulation of their apartments and rent overcharge while landlord received "J-51" tax benefits. Tenants sought a declaration that all apartments in the building complex were subject to rent stabilization, as well as injunctive relief and a money judgment. While tenants also initially sought triple damages, they later waived that request and sought only overcharge reimbursement plus interest. The court ruled against tenants and dismissed the case, finding that tenants should bring claims individually before the DHCR. Tenants appealed and won. Either the DHCR or the court can determine overcharge claims. And while Rent Stabilization Code Section 2520.13 states that tenants can't waive the benefit of any provision of the Rent Stabilization Law or Code, tenants were entitled to unilaterally waive their right to triple damages in order to comply with class action law prohibiting penalties.

Downing v. First Lenox Terrace Associates: 2013 NY Slip Op 02853, 2013 WL 1760276 (App. Div. 1 Dept.; 4/25/13; Tom, JP, Andrias, Renwick, DeGrasse, Abdus-Salaam, J)