In the Matter of 508 Realty Assoc. LLC, v. New York State Division of Hous. & Community Renewal , a landlord asked for administrative review of treble damage award.
When the New York State Division of Housing and Community Renewal finds a landlord has charged a rent stabilized tenant in excess of the permissible legal rent for a residential unit, state law permits the imposition of a penalty of up to three times the amount of the overcharge -- with the burden falling on the landlord to show its conduct wasn't intentional or willful.
After the Kings County Supreme Court found the owner's conduct lacked the requisite deliberateness and vacated the award, the DHCR appealed to the Appellate Division, Second Department.
Upon a court's review of an administrative decision, an agency will usually be given considerable latitude, unless its determination is found to be "arbitrary and capricious" or lacking rationality.
Since the landlord's documentation was spotty and laden with "inaccuracies and discrepancies," the AD2 was of the view 508 Realty hadn't established -- by a preponderance of the evidence -- that the overcharge was inadvertent.
Bet the landlord willed that one away.
To view a copy of the Appellate Division's decision, please use this link: Matter of 508 Realty Assoc. LLC, v. New York State Division of Hous. & Community Renewal