Case Type

Overcharge

Housing Type

Rent Stabilized

Court

Appellate Division; First Department

County

New York County (Manhattan)

L&T / Index / Case / Docket / Clerk's Number

160054/23

Slip Opinion Number

2025 NY Slip Op 05659

Petitioner

Wadsworth Associates LLC

Respondent

New York State Division of Housing and Community Renewal

Judge

Webber; Kennedy; Mendez; Rodriguez; Higgitt

Decision/Order Date

2025-10-14

Posture

Other

Disposition

Other

Winner

Other

Synopsis

In this Article 78 proceeding; the Appellate Division affirmed a Supreme Court judgment that partially denied and partially granted a landlord's petition challenging a DHCR determination. The court upheld DHCR's finding of a rent overcharge due to the landlord's failure to adequately substantiate individual apartment improvements (IAIs); citing an identity of interest with the contractor and insufficient proof. However; the court affirmed the vacatur of treble damages; finding DHCR's imposition arbitrary and capricious. The court reasoned that DHCR deviated from its own precedent; which generally does not treble damages when claimed improvements are undisputed but costs are not fully established; and failed to articulate another basis for finding willfulness.

Keywords

Article 78; DHCR; Rent Overcharge Found Based on Inadequate Proof of IAIs; Vacatur of Treble Damages; No Evidence of Willfulness

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