Four-Year Rule Doesn't Apply

Landlord sued to evict tenant for nonpayment of rent. Tenant claimed that she was rent stabilized and that landlord was overcharging her. She asked the court to rule in her favor without a trial. Landlord claimed that tenant's initial rent was more than $2,000 per month and that tenant therefore was deregulated. Landlord also argued that the four-year statute of limitations on rent overcharge barred tenant's claims. The court ruled that although the four-year limitation barred a rent overcharge claim predating Sept. 23, 2003, the four-year limit didn't apply to a determination of whether the apartment was rent stabilized. A trial was needed to determine the facts. The apartment was registered in 2003 in the name of a prior rent-stabilized tenant at a vacancy rent of $1,870 per month. In 2004, the apartment was registered as a deregulated high-rent vacancy in the name of a second prior tenant at a vacancy rent of $2,208. That tenant's lease ran from March 1, 2004, through Feb. 28, 2005. Tenant claimed that the 2003 registration was fraudulent. Although tenant didn't produce any significant proof to support her claim, landlord also didn't produce a copy of the 2003 lease for the apartment or other proof that the 2003 registration was valid. If the apartment was properly deregulated, there was no overcharge under the four-year rule. But if the 2003 lease and registration were fraudulent, the 2003 registration would be null, and the legal rent would be determined by use of the default formula set by the DHCR.

286 Clinton LLC v. Lazarre: NYLJ, 1/7/08, p. 21, col. 1 (Cit. Ct. Kings; Kraus, J)