78/79 York Associates v. Rand

175 Misc. 2d 960, 672 N.Y.S.2d 619, 1998 N.Y. Misc. LEXIS 74
CourtCivil Court of the City of New York
DecidedJanuary 28, 1998
StatusPublished
Cited by4 cases

This text of 175 Misc. 2d 960 (78/79 York Associates v. Rand) is published on Counsel Stack Legal Research, covering Civil Court of the City of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
78/79 York Associates v. Rand, 175 Misc. 2d 960, 672 N.Y.S.2d 619, 1998 N.Y. Misc. LEXIS 74 (N.Y. Super. Ct. 1998).

Opinion

OPINION OF THE COURT

Timmie Erin Elsner, J.

Petitioner moves in this nonpayment proceeding for an order to “renew” its application to strike respondent’s second counterclaim1 upon the ground that it is barred by the recently amended CPLR 213-a. Respondent opposes.2

The issues before the court are (1) whether petitioner’s motion to renew is timely; and if so, (2) whether the recent amendment of CPLR 213-a mandates a reconsideration of the court’s initial denial of petitioner’s application to strike respondent’s claim for rent overcharge.

Procedural History

Respondent took occupancy of the premises at 1482 York Avenue, apartment 6-G, pursuant to an initial lease dated August 5, 1991 for a term which commenced on August 15, 1991. The legal rent registered by the landlord predecessor-in-interest with the Division of Housing and Community Renewal (DHCR) as of April 1991 was $267.45 per month. Respondent’s initial rent was $750 per month. The rent as last renewed was $772.50 per month.

Petitioner instituted this nonpayment proceeding seeking rent from January 1995 through August 1995 at the rate of [962]*962$772.50 per month. Respondent’s answer asserted various affirmative defenses and counterclaims, including rent overcharge. Issue was joined on October 3, 1995.

Petitioner’s motion to strike respondent’s fifth affirmative defense and second counterclaim was denied by the Honorable Eileen Bransten in her January 5, 1996 decision.3 The court found that there was a triable issue as to whether the premises was currently registered with the DHCR. The court also rejected petitioner’s argument that respondent’s rent overcharge claim was barred by the thén four-year CPLR 213-a Statute of Limitations. Petitioner had contended that the claim for overcharge began to accrue as of the date the lease was signed, August 15, 1991. The court endorsed respondent’s position, citing Hart-Zafra v Pilkes (NYLJ, Feb. 1, 1995, at 29, col 2),4 for the proposition that the cause of action for rent overcharge accrues on a continuing basis every month that respondent is overcharged.

By order dated April 22, 1996, Judge Bransten denied petitioner’s motion to reargue her denial of petitioner’s previous motion to strike respondent’s second counterclaim. Judge Bransten noted that the case of Hart-Zafra v Pilkes (supra) had recently been affirmed by the Appellate Term (NYLJ, Apr. 12, 1996, at 25, col 3). Respondent’s application for discovery was also granted.

Respondent then moved for partial summary judgment as to petitioner’s liability for rent overcharge, treble damages and to establish the legal monthly rent at $275.48. The motion was granted by the Honorable Saralee Evans by order dated December 13, 1996. In particular, Judge Evans held that the legal rent for the subject premises was $275.48 per month, effective as of the date of respondent’s first lease.

Respondent moved to reargue Judge Evans’ determination and the motion was granted in part by her decision of April 4, 1997. Judge Evans adjusted the monthly legal rent to $267.45 plus any lawful Rent Guidelines Board increase to which

[963]*963petitioner was entitled when respondent moved into the premises. The matter was set down for a hearing to determine petitioner’s liability for any rent overcharge.

Petitioner’s Motion for Renewal

In support of its present motion, petitioner argues that the Rent Regulation Reform Act of 1997 (L 1997, ch 116, § 34), enacted on June 19, 1997, effective immediately, which amended CPLR 213-a obviates respondent’s second counterclaim.

Respondent opposes this application.

Timeliness

CPLR 2221 permits a party to move for leave to renew or reargue a prior motion.

“A motion for reargument, addressed to the discretion of the court, is designed to afford a party an opportunity to establish that the court overlooked or misapprehended the relevant facts, or misapplied any controlling principle of law * * *

“An application for leave to renew must be based upon additional material facts which existed at the time the prior motion was made, but were not then known to the party seeking leave to renew, and, therefore, not made known to the court” (Foley v Roche, 68 AD2d 558, 567-568 [1st Dept 1979]). Although petitioner has denominated his motion as one for “renewal”, a motion which seeks reconsideration of a court’s decision based upon a subsequent change in the law is a motion to reargue. Petitioner’s error in mischaracterizing his application, however, is not fatal.

Ordinarily a motion to reargue must be made within the time in which an appeal from the original order could have been taken (Siegel, NY Prac § 254, at 383 [2d ed]). If an appeal is pending when the motion to reargue is submitted, however, then the motion to reargue cannot be seen as trying to extend the time for appeal (Matter of William H. Van Vleck, Inc. v Klein, 50 Misc 2d 622 [Sup Ct, Kings County 1966]), and the court is then more likely to entertain it. This is especially true when the motion for reargument is based upon a change in the law while the appeal is pending (see, Siegel, Practice Commentaries, McKinney’s Cons Laws of NY, Book 7B, CPLR C2221:8, at 184; 1 Weinstein-Korn-Miller, NY Civ Prac ¶ 2221.04). In Weissblum v Mostafzafan Found. (60 NY2d 637 [1983]), the Court of Appeals entertained a motion to reargue, where li[964]*964ability had been determined, but not the amount of damages. The Court noted that subsequent to its determination of liability there was a change in the law which by its terms was made applicable to all pending proceedings. Such is the case in the instant matter. Here, the parties filed their notices of appeal soon after Judge Bransten issued her original determination. During the pendency of the appeal, the Statute of Limitations governing overcharge claims has been amended. The new statute provides for application to all pending matters.5 Therefore, this court may now entertain petitioner’s motion to reargue, and petitioner’s motion is so granted.

History of CPLR 213-a and Its Interpretation by the Courts

Prior to amendment CPLR 213-a simply provided: “An action on a residential rent overcharge shall be commenced within four years of such overcharge.”

The creation in 1983 of a new Statute of Limitations of four years for claims of rent overcharge generated controversy as to whether such calculations could be based upon information produced prior to those four years, even if the tenant could obtain relief only for the most recent four years.6

This issue became more complicated because the Statute of Limitations was merely a small part of a greater regulatory scheme of which all the other portions only required landlords to maintain records for the most recent four years.7 An owner could certainly choose to maintain records for a time period longer than that required. Owners who relied on rent regulations and maintained records for the required four years could have been and were subject to negative inferences in the [965]*965calculation of the legal rent depending on the evidence introduced.8

In

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Bluebook (online)
175 Misc. 2d 960, 672 N.Y.S.2d 619, 1998 N.Y. Misc. LEXIS 74, Counsel Stack Legal Research, https://law.counselstack.com/opinion/7879-york-associates-v-rand-nycivct-1998.