Triple Damages Imposed Despite Overcharge Refund

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant based on landlord's failure to submit any rent history records. The DRA used the DHCR's default method to calculate the overcharge and imposed triple damages for willful overcharge. Landlord appealed and lost. Landlord claimed that it had refunded any overcharge to tenant during the time allowed to answer tenant's complaint. Therefore, landlord argued, there should be no finding of willful overcharge. But since landlord never submitted any leases or rent ledgers to the DRA, the DRA couldn't calculate the legal rent and it could not be determined if landlord fully refunded the overcharge. So it didn't matter in this case that landlord made some refund.

229 West 135th Street: DHCR Adm. Rev. Docket No. XC410011RK (4/28/09) [4-pg. doc.]