Loft Tenant's Overcharge Claim Barred by Four-Year Limit

December 1, 2008

LVT Number: #20875

Loft tenant filed a rent overcharge complaint in 2006 with the NYC Loft Board. She moved into the loft in 1990, and claimed that prior tenant's rent of $770 per month was the maximum amount that could be charged. The building was an interim multiple dwelling that wasn't yet rent stabilized. The Loft Board ruled for tenant and ordered landlord to refund $63,000. Landlord appealed, claiming that tenant's complaint was time-barred. Tenant argued that the law applying to loft overcharges was different from the four-year rule under rent stabilization. The court ruled for landlord.

Loft tenant filed a rent overcharge complaint in 2006 with the NYC Loft Board. She moved into the loft in 1990, and claimed that prior tenant's rent of $770 per month was the maximum amount that could be charged. The building was an interim multiple dwelling that wasn't yet rent stabilized. The Loft Board ruled for tenant and ordered landlord to refund $63,000. Landlord appealed, claiming that tenant's complaint was time-barred. Tenant argued that the law applying to loft overcharges was different from the four-year rule under rent stabilization. The court ruled for landlord. Under CPLR 213-a, an overcharge claim must be raised within four years of the first overcharge claimed. Since tenant's complaint was filed more than 15 years after the initial overcharge, her complaint was time-barred.

Nur Ashki Jerrahi Community v. NYC Loft Board: NYLJ, 11/26/08, p. 28, col. 1 (Sup. Ct. NY; Lehner, J)

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