Entire Rent History Must Be Weighed in Disputes, Panel Says
by Brendan Pierson
New York Law Journal
December 5, 2012
The new stabilized rent of an apartment that had been illegally deregulated must be based on its entire rent history, not just the last four years, a state appellate panel said yesterday. The ruling is the latest in a series of tenant-friendly decisions to emerge in the wake of the Court of Appeals' 2009 ruling that apartments in buildings receiving J-51 tax benefits cannot be deregulated.
The Appellate Division, First Department, ruled in 72A Realty v. Lucas, 570514/10, that the four-year statute of limitations for rent overcharge actions does not apply when an apartment has been illegally deregulated, partly reversing a June 2011 decision by the Appellate Term.
Justices Angela Mazzarelli, David Saxe, Leland DeGrasse, Rosalyn Richter and Sheila Abdus-Salaam joined the unsigned opinion.