Court Can't Consider Overcharge Occurring Four Years Before Tenant Asserted Counterclaim

Landlord sued to evict rent-stabilized tenant for refusing to renew his lease. The renewal lease stated that tenant's legal rent was $2,000 and that tenant could pay a preferential rent of $1,595. In response, tenant counterclaimed that landlord had collected a rent overcharge. He said his first lease in 1993 was for a rent of $1,500, but the last registered rent in 1985 was $360. Landlord didn't register the apartment again until 1999, when it filed late registrations for 1994-99. Landlord asked the court to dismiss the overcharge claim because tenant had paid the challenged rent for more than four years before complaining. The court ruled against landlord because the apartment wasn't registered for four years before tenant made the overcharge claim. Landlord appealed and won. Tenant claimed the rent overcharge in 2001 when he asserted his rent overcharge counterclaim. In 1997, he paid $1,580 in rent. It didn't matter if landlord didn't file registration statements or filed late.

Ridges & Spots Realty v. Edwards: NYLJ, 6/15/04, p. 24, col. 3 (App. T. 1 Dept.; Davis, JP, Gangel-Jacob, Schoenfeld, JJ)