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Ms. Kelly claims she was overcharged in rent, with her landlord raising it from $300 to $600, which she believes is against the law. She also states that some of her belongings were damaged when he put them outside. Mr. Augustus argues that he can charge whatever rent he wants in his private home. Judge Judy mentions that Ms. Kelly lived rent-free from May to October and made false allegations to the housing authority. Despite reporting unsavory conditions, she stayed until October without paying rent. The case involves a dispute over rent payments and living conditions.