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What Is the Statute of Limitations in a Rent
Overcharge Case?
Of all the weapons that a landlord's attorney can use to defeat
a rent overcharge case, none is more effective than the statute
of limitations, as strengthened by the Rent Regulation Reform
Act of 1997.
The statute of limitations on a rent overcharge case is four
years. But, as in almost everything regarding rent overcharge
cases, a supposedly simple rule quickly becomes very complicated.
Tons of  trees
have been felled to make the paper for lawyers to litigate the
meaning of the four-year rule.
Logic would dictate that if the landlord overcharges the tenant
every month for ten years, then the tenant should be able to claim
the last four years of overcharges, right? Wrong. The Rent Regulation
Reform Act of 1997 limited "examination of the rental
history of the housing accommodation prior to the four-year
period preceding the filing of a complaint" (see L 1997,
ch 116, § 33). This act covers all rent overcharge cases, including
fair market rent appeals. Gilman v. Division of Housing and
Community Renewal, 2002 NY Int. 148 (N.Y.) [November 21, 2002].
If a landlord successfully overcharges a tenant for four years,
then he gets to overcharge the tenant permanently.
While this may seem unfair, there are important reasons behind
the four-year rule. The rule is meant to protect landlords from
the burden of preserving rent records for thousands of apartments
for an indefinite period of time. Perhaps it would be difficult
for people to buy and sell real estate if an owner was liable
for overcharges that may have begun ten or twenty years ago. Meanwhile,
tenants point out that this law confers immunity on fraudulent
landlords who succeed in hiding their overcharges from their tenants
for four years.
But there are exceptions! There are too many factors to mention
here. Needless to say, you have to have your rent history reviewed
by an experienced attorney before deciding that your case is precluded
by the four-year rule.
If you draw anything from this discussion of the four-year rule,
it is that time is of the essence in seeking advice from an attorney.
Once tenants realize that they are being overcharged, they may
have a few months, or even a few days before their four years
run out. Get that rent history from DHCR and take it to an experienced
attorney without delay.
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Steven
De Castro, Esq., represents tenants in rent overcharge cases.
To find out how the statements made on this site may be applicable
to your situation, call 212-964-5364.
