Triple Damages Imposed Against Current Landlord

Rent-stabilized tenant complained of a rent overcharge. The DHCR ruled for tenant, finding a willful overcharge. Current landlord appealed. It claimed that it was unfair to impose triple damages on current landlord when prior landlord committed the overcharge and current landlord tried to correct it. The court ruled against landlord. The Rent Stabilization Code allows the DHCR to find a current landlord liable for triple damages based on a prior landlord's overcharge. The DHCR had sent current landlord notice of its intent to impose triple damages, giving current landlord a chance to respond. Current landlord didn't prove that it had made a good-faith effort to refund the overcharge to tenant.

E. 163rd St. LLC v. DHCR: NYLJ, 4/21/04, p. 18, col. 3 (Sup. Ct. Bronx; Renwick, J)