"Reichenbach v. Jacin Invs. Corp."
 

Case Type

Overcharge

Housing Type

Rent Stabilized

Court

Appellate Division, First Department

County

New York County (Manhattan)

L&T / Index / Case / Docket / Clerk's Number

155013/19

Slip Opinion Number

2025 NY Slip Op 02023

Petitioner

Reichenbach et al.

Respondent

Jacin Investors Corp. et al.

Judge

Manzanet-Daniels, Moulton, Gesmer, Pitt-Burke, Michael

Decision/Order Date

2025-04-03

Posture

Post-answer Motion by Tenant

Disposition

Motion Granted for Tenant

Winner

Tenant Substantially Won

Synopsis

Tenants alleged a fraudulent scheme by landlord to deregulate rent-stabilized units without lawful justification, citing unexplained rent spikes unsupported by Major Capital Improvements (MCIs) or Individual Apartment Improvements (IAIs). Landlord failed to rebut with documentation, triggering the use of DHCR's default formula. Applying recent amendments to the Rent Stabilization Law mandating a return to Thornton and Grimm, the court found a colorable claim of fraud and ruled apartments 2J, 3D, 4C, and 5J were unlawfully deregulated. The court ordered declaratory and injunctive relief, including the issuance of proper rent-stabilized leases. Practice Note: Under amended rent laws, courts may examine the full rental history and need not find all elements of common law fraud to impose tenant-favorable remedies.

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