The four-year statute of limitations on rent overcharges under the RSL, first enacted pursuant to L. 1983, ch. 403, recently celebrated its 27th birthday. Notwithstanding, courts and individual judges continue to sharply disagree as to how the so-called “four-year rule” is to be interpreted and implemented.
The point is illustrated by the Appellate Division, First Department’s recent decision in Rich v. East 10th Street Assoc. LLC, NYLJ, July 29, 2010, at 43, col. 1. In Rich, the Appellate Division majority, led by Justice Sheila Abdus-Salaam, held that a DHCR rent reduction order issued more than four years before the commencement of a rent overcharge action cannot be used to determine the “base rent” for the apartment. Justice Peter Tom dissented, arguing that a rent reduction order necessarily affects the calculation of the base rent, even if that order was issued more than four years before the tenant’s overcharge complaint.
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