X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

  Landlord appeals from a final judgment of the Civil Court of the City of New York, Bronx County (Brenda S. Spears, J.), entered November 30, 2018, after a nonjury trial, which dismissed the petition and awarded tenants a money judgment in the principal sum of $14,022.00 in a nonpayment summary proceeding. PER CURIAM Final judgment (Brenda S. Spears, J.), entered November 30, 2018, affirmed, with $25 costs. Giving due deference to the trial court’s findings of fact, we find no cause to disturb the court’s ultimate determination that landlord willfully overcharged tenants, who commenced occupancy in March 2016 at a stabilized rental of $1,149.38 per month. Landlord failed to establish the existence of apartment improvements justifying the increase in the legal rent from $637.40 (the prior tenant’s rent, plus a then applicable vacancy increase), to the $1,149.38 charged and initially paid by tenants, an 80 percent increase in rent. The record shows, and the trial court found, that landlord failed to submit adequate documentation in support of its claimed improvements, or witness testimony establishing the nature and scope of the work performed (see Graham Ct. Owners Corp. v. Long, 64 Misc 3d 133[A], 2019 NY Slip Op 51083[U] [App Term, 1st Dept 2019]; East 17th LLC v. McCusker, 63 Misc 3d 134[A], 2019 NY Slip Op 50469[U][App Term, 1st Dept 2019]; Graham Ct. Owners Corp. v. Green, 11 Misc 3d 131[A], 2006 NY Slip Op 50333[U] [App Term, 1st Dept 2006]). Contrary to landlord’s principal argument, the issue of the legality of the $1,149.38 rent was properly before the court, since tenants affirmatively pleaded in their answer that landlord is “seeking a rent in excess of the lawful rent” and their counterclaim for rent overcharge was based upon the 80 percent increase in rent noted above (see CPLR 3018[b]). In the circumstances, landlord was required to prove the existence of apartment improvements justifying the increase in the legal rent to $1,149.38 (see Ruggerino v. Prince Holdings 2012, LLC, 170 AD3d 568, 569 [2019]). Treble damages were properly imposed, since landlord failed to establish that its overcharge was not willful (see Matter of Obiora v. New York State Div. of Hous. & Community Renewal, 77 AD3d 755, 756 [2010]; Matter of Hargrove v. Division of Hous. & Community Renewal, 244 AD2d 241 [1997]. THIS CONSTITUTES THE DECISION AND ORDER OF THE COURT. Dated: February 26, 2020

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

More From ALM

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
December 02, 2024 - December 03, 2024
Scottsdale, AZ

Join the industry's top owners, investors, developers, brokers and financiers for the real estate healthcare event of the year!


Learn More
December 11, 2024
Las Vegas, NV

This event shines a spotlight on how individuals and firms are changing the investment advisory industry where it matters most.


Learn More
February 24, 2025 - February 26, 2025
Las Vegas, NV

This conference aims to help insurers and litigators better manage complex claims and litigation.


Learn More

We are seeking two attorneys with a minimum of two to three years of experience to join our prominent and thriving education law practice in...


Apply Now ›

Description: Fox Rothschild has an opening in the New York office for a Real Estate Litigation Associate with three to six years of commerci...


Apply Now ›

Downtown NY property and casualty defense law firm seeks a Litigation Associate with 3+ years' experience to become a part of our team! You ...


Apply Now ›