Matter of Mengoni v. New York State Div. of Hous. & Community Renewal, 97 N.Y.2d 631 (2001)
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The four-year limitations period for rent overcharge complaints under the Rent Stabilization Law (RSL) does not apply retroactively to complaints filed before April 1, 1984, the effective date of the RSL amendment establishing the limitations period.
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Summary
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These consolidated cases address whether the four-year statute of limitations for rent overcharge complaints, introduced in the Omnibus Housing Act of 1983 and later amended by the Rent Regulation Reform Act of 1997 (RRRA-97), applies retroactively to complaints filed before April 1, 1984. The Court of Appeals held that it does not. For complaints filed before that date, the entire rental history of the tenant may be considered when calculating rent overcharges. The court reasoned that the RRRA-97 amendments, while applying to pending cases, did not explicitly address or alter the established precedent regarding pre-1984 complaints.
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Facts
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In Mengoni, a tenant filed a rent overcharge complaint in March 1984, alleging overcharges dating back to January 1983. In Orin, a tenant filed a rent overcharge complaint in March 1984, alleging overcharges dating back to August 1977. Both complaints were filed with the New York City Conciliation and Appeals Board before April 1, 1984. In both cases, landlords were found to have overcharged tenants. The landlords appealed, arguing that RRRA-97, which imposed a four-year look-back period, should apply retroactively.
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Procedural History
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In Mengoni, the Supreme Court remanded the case to DHCR for a de novo hearing, but the Appellate Division reversed and reinstated DHCR’s determination, holding that RRRA-97 did not apply. In Orin, the Supreme Court granted the landlord’s article 78 petition, annulling the DHCR order. The Appellate Division affirmed, holding that RRRA-97 applied to all pending complaints regardless of filing date. The Court of Appeals affirmed the Appellate Division’s decision in Mengoni and reversed the Appellate Division’s decision in Orin, remitting the case for further proceedings.
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Issue(s)
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Whether the four-year limitations period for rent overcharge complaints, as amended by RRRA-97, applies retroactively to complaints filed before April 1, 1984, the effective date of the RSL amendment establishing the limitations period?
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Holding
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No, because complaints filed before April 1, 1984, are not considered complaints “pursuant to” the amended RSL section introducing the four-year limitations period; therefore, the RRRA-97 amendments do not apply to them.
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Court’s Reasoning
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The Court relied on its prior decision in Matter of Century Tower Assocs. v State of New York Div. of Hous. & Community Renewal, (83 NY2d 819, 823), which held that the law in effect when the complaint was filed applies to overcharge complaints filed before April 1, 1984. This meant that the four-year limitations period did not apply to those cases, allowing consideration of the entire rental history. The court addressed the language in Section 46 of RRRA-97, which stated that Section 33 (the four-year look-back amendment)