Landlord Can't Get Tax Reimbursement from SCRIE Tenant

August 31, 2000

LVT Number: 14405

Landlord sued tenant for tax reimbursement. Landlord had to refund SCRIE tax benefits to the City of New York for the years 1985 to 1991 after it was discovered that tenant didn't recertify for benefits after 1984. Landlord claimed that tenant was unjustly enriched and should have to pay landlord the tax reimbursement landlord had to give to the city. The court ruled for landlord. Tenant appealed and won. A claim for unjust enrichment must be made within six years from when the unjust enrichment occurred, not six years from when it is discovered.

Landlord sued tenant for tax reimbursement. Landlord had to refund SCRIE tax benefits to the City of New York for the years 1985 to 1991 after it was discovered that tenant didn't recertify for benefits after 1984. Landlord claimed that tenant was unjustly enriched and should have to pay landlord the tax reimbursement landlord had to give to the city. The court ruled for landlord. Tenant appealed and won. A claim for unjust enrichment must be made within six years from when the unjust enrichment occurred, not six years from when it is discovered. At the latest, this occurred in 1991, and landlord didn't sue tenant until 1998. So landlord didn't start its case on time.

Seventh FGP, Inc. v. Yee: NYLJ, 8/16/00, p. 22, col. 2 (App. T.1 Dept.; McCooe, JP, Davis, Gangel-Jacob, JJ)

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