Elizabeth Reich v Belnord Partners, LLC
Rosenberg & Estis, P.C. successfully obtained the dismissal of a claim for rent overcharges and successfully opposed a motion for summary judgment brought by tenants alleging the owners’ failure to charge proper rent-stabilized rents while receiving J-51 tax benefits. R&E’s favorable decision granted the owner’s motion to dismiss the tenants’ rent overcharge claim, strictly applied the four-year statute of limitations and denied the tenants’ cross-motion for summary judgment.
In this case, the proactive owner promptly took all steps necessary to comply with the Court of Appeals decision which clarified the law in 2009, and therefore, the owner was properly afforded the protection of the applicable statute of limitations for rent overcharge claims. Promptly after the Court of Appeals’ decision in Roberts v Tishman Speyer Properties, LP, 13 NY3d 270 (2009) (” Roberts“), the owner registered the tenants’ apartment and rent as rent-stabilized with the New York State Division of Housing and Community Renewal (“DHCR”) and gave the tenants a rent-stabilized lease. The owner also directly advised the tenants of the Roberts decision by including a rider to their lease. Since that time, the owner continued to issue rent-stabilized renewal leases with lawful rent increases and registered the apartment and rent with DHCR.
The tenants did not assert a claim of rent overcharge until 2016, more than six years after the owner registered the rent with DHCR and advised the tenants of the Roberts decision in 2010. Accordingly, R&E moved to dismiss the tenants’ rent overcharge claim, arguing that it was barred by the applicable statute of limitations and “Four Year Rule.”
When they commenced an action in Supreme Court, Supreme Court accepted R&E’s arguments in full and dismissed the tenants’ rent overcharge claim, finding no reason to permit a longer look back period or to disregard the four year statute of limitations, since there was no indication of fraud by the owner and the tenants were indisputably on notice of the Roberts decision and its impact on their tenancy for more than four years. Having dismissed the overcharge claim, Supreme Court also denied the tenants’ cross-motion for summary judgment.
The tenants appealed the decision of the Supreme Court to the Appellate Division, First Department. R&E successfully opposed the appeal. The Appellate Division, First Department agreed with R&E’s arguments and unanimously affirmed the decision of the Supreme Court.
R&E’s victory affirms owners who act in good faith to comply with the law will be protected and affirms Courts will not extend the Statute of Limitations for tenants who opportunistically seek to assert claims that are long since time barred.