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455 Ocean Associates v. New York State Division of Housing& Community Renewal

Appellate Division of the Supreme Court of New York, Second Department
Jul 14, 1997
241 A.D.2d 495 (N.Y. App. Div. 1997)

Opinion

July 14, 1997

Appeal from Supreme Court, Kings County (Kramer, J.).


Ordered that the notice of appeal from the order dated May 17, 1996, is deemed an application for leave to appeal from that order and leave to appeal is granted; and it is further,

Ordered that the order is reversed insofar as appealed from, on the law, with costs, the award of treble damages is reinstated, the petition is denied in its entirety, and the proceeding is dismissed.

Contrary to the Supreme Court's determination, the record clearly establishes that, even if the initial notice failed to apprise the petitioner that it could be subject to treble damages, the petitioner, nonetheless, received two subsequent notices to that effect ( see, Matter of Starlight Realty Assocs. v. State Div. of Hous. Community Renewal, 168 A.D.2d 306, 307).

Further, the Supreme Court erred in annulling the imposition of treble damages. Once it was determined that the petitioner had overcharged the complaining tenant for rent, it became incumbent upon the petitioner to establish by a preponderance of the evidence that such overcharges were not willful ( see, Matter of Chu v. New York State Div. of Hous. Community Renewal, 231 A.D.2d 567; Matter of Branch v. State Div. of Hous. Community Renewal, 217 A.D.2d 581; Matter of Wai Leung Chan v. New York State Div. of Hous. Community Renewal, 207 A.D.2d 552). Since the petitioner failed to meet this burden, the New York State Division of Housing and Community Renewal properly imposed treble damages ( see, Administrative Code of City of N.Y. § 26-516 [a]).

Lastly, the court improperly remitted the proceeding for reconsideration of the rent credit allegedly given by the petitioner to the tenant. The appellant's determination had a rational basis as the petitioner failed to provide any evidence concerning an alleged rent credit, and, absent good cause for this failure, the review by the Commissioner of the initial agency order by the Rent Administrator was limited to the facts and evidence which were before the Rent Administrator ( see, Matter of Birdoff Co. v. New York State Div. of Hous. Community Renewal, 204 A.D.2d 630, 631; Matter of Fanelli v New York City Conciliation Appeals Bd., 90 A.D.2d 756, affd 58 N.Y.2d 952).

Rosenblatt, J. P., Thompson, Pizzuto and Altman, JJ., concur.


Summaries of

455 Ocean Associates v. New York State Division of Housing& Community Renewal

Appellate Division of the Supreme Court of New York, Second Department
Jul 14, 1997
241 A.D.2d 495 (N.Y. App. Div. 1997)
Case details for

455 Ocean Associates v. New York State Division of Housing& Community Renewal

Case Details

Full title:In the Matter of 455 OCEAN ASSOCIATES, Respondent, v. NEW YORK STATE…

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: Jul 14, 1997

Citations

241 A.D.2d 495 (N.Y. App. Div. 1997)
661 N.Y.S.2d 18

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