Triple Damages Revoked

(Decision submitted by Karen Schwartz-Sidrane of the Baldwin law firm of Pennisi Daniels & Norelli, LLP, attorneys for the landlord.) Tenant complained of a rent overcharge. The DRA ruled for tenant and found that the overcharge was willful. Landlord was ordered to refund $9,000, including triple damages. Landlord appealed, claiming it should be able to collect a first rent-stabilized rent because tenant's apartment had been substantially altered. The DHCR ruled for landlord in part. Landlord hadn't altered the outer walls of the apartment, so a new apartment warranting a first stabilized rent hadn't been created. But landlord believed in good faith that he had created a new apartment. So there was no willful overcharge and the triple damages were revoked.

Edelstein: DHCR Adm. Rev. Dckt. No. GF510025RO (1/15/99) [3-pg. doc.]