Four-Year Rule Applied to Overcharge Claims

Tenants brought a class action against landlord, seeing a declaration as to their rent-stabilized status and payment of damages for rent overcharges. Tenants claimed that landlord had improperly deregulated apartments after receiving J-51 tax benefits. Among other things, landlord and tenants disagreed as to the proper methodology for calculating overcharges. The court found that tenants completed pre-trial questioning without uncovering or even claiming any proof of fraud or willfulness. Tenants also didn’t present any compelling policy concerns justifying their preferred methodology for overcharge calculation. Therefore, as landlord argued, rent overcharges should be calculated from the base date four years before the filing of the court action. But the court would not reduce the 9 percent interest rate as requested by landlord. 

Gerard v. Clermont York Associates LLC: 53 Misc.3d 1211(A), 2016 NY Slip Op 51590(U) (Sup. Ct. NY 11/4/16; Edmead, J)