320 Equities v. Blount

In 320 Equities v. Blount (NYLJ, Jan. 18, 1995, at 29, col 2 [Civ Ct, NY County]) the first tenant after the vacatur by the rent-controlled tenant asserted a defense and counterclaim of rent overcharge in a nonpayment proceeding. The landlord served the RR-1 after the commencement of that proceeding and the tenant sought treble damages for the difference between the market rent and the last rent under rent control based on Smitten (supra). The landlord argued that RRRA 1993 "provide[d] immunity from overcharges which arise solely from a failure to file an initial or annual registration." (320 Equities v. Blount, supra, at 29, col 2.) The court, applying DHCR Operational Bulletin 94-1 and Administrative Code 26-517 (e), agreed that treble damages could not be obtained based solely on a landlord's failure to register provided that increases are lawful, and that the landlord should be accorded the protection provided by RRRA 1993. (Id.) However, the court noted that certain due process considerations are implicated when an apartment goes from rent control to rent stabilization, namely, the tenant's right to a fair market rent appeal pursuant to 9 NYCRR 2522.3 and that nothing in RRRA 1993 abrogates this right.