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Landlord & Tenant Law
Tenant Not Entitled to Treble Damages Because Overcharge Was Not Willful
Paulonis v. 287 Associates, L.P., NYLJ 10/8/21 p. 22, col 3, AppDiv, Second Dept. (memorandum opinion)
In tenant's action against landlord for fraud and rent overcharge, tenant appealed from Supreme Court's judgment, after a nonjury trial, dismissing tenant's demand for treble damages. The Appellate Division affirmed, holding that the overcharge was not willful.
Landlord of a multi-family building in Brooklyn imposed charges in leases designated as "421-a Tax Exemption Program, 2.2% charge." Tenant brought this action for fraud and rent overcharge, contending that the charge was unauthorized and seeking treble damages and a calculation of lawful rent under DHCR's default formula. Supreme Court determined that landlord did not intentionally act to defraud and determine that the demand for treble damages should be dismissed. Tenant appealed.
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