Wise v. 1614 Madison Partners, LLC

Summary

The Appellate Division, First Department affirmed orders denying a motion to dismiss a putative class action alleging rent overcharges based on manipulation of initial legal regulated rents through concessions. The court also affirmed class certification while limiting the class period to tenants residing in or formerly residing at the premises on or after May 27, 2018. It held that the former four-year statute of limitations under CPLR 213-a governed the claims.

Holdings

1. The complaint adequately alleged that defendant improperly manipulated apartments' initial legal regulated rents through the offering of concessions, so denial of the motion to dismiss was proper.
2. Supreme Court properly exercised its discretion to decline consideration of defendant's untimely reply papers.
3. Even if considered, the documents submitted on reply did not utterly refute the allegations that the purported construction concessions were part of a fraudulent scheme to register inflated initial rents.
4. The class period properly commenced on May 27, 2018, and the four-year limitations period under former CPLR 213-a governed rent-overcharge claims accruing before enactment of the Housing Stability and Tenant Protection Act.

Questions Presented

1. Whether the complaint adequately alleged that defendant improperly manipulated initial legal regulated rents through purported concessions, thereby stating rent-overcharge claims.
2. Whether Supreme Court properly declined to consider defendant's untimely reply papers.
3. Whether documents submitted with defendant's reply utterly refuted the complaint's allegations under CPLR 3211(a)(1).
4. Whether the class period for the rent-overcharge claims properly commenced on May 27, 2018, rather than May 27, 2016.
5. Whether the four-year statute of limitations under former CPLR 213-a governed rent-overcharge claims accruing before enactment of the Housing Stability and Tenant Protection Act.

Disposition

affirmed