Case Type
Overcharge
Housing Type
Rent Stabilized
Court
Court of Appeals
County
New York County (Manhattan)
L&T / Index / Case / Docket / Clerk's Number
No. 10
Slip Opinion Number
2026 NY Slip Op 00637
Petitioner
Leisa Aras, Catherine Schwartz
Respondent
B-U Realty Corp.
Judge
Wilson, Rivera, Garcia, Singas, Cannataro, Troutman, Halligan
Decision/Order Date
2026-02-11
Posture
Other
Disposition
Other
Winner
Tenant Substantially Won
Synopsis
In this overcharge case, the Court of Appeals clarified the standard for applying the fraud exception to the Rent Stabilization Law's four-year lookback period. The court reiterated that a tenant need not prove every element of common-law fraud to invoke the exception. Instead, a tenant must only demonstrate "sufficient indicia of fraud" or a "colorable claim of a fraudulent scheme." The Court reversed the lower court's order, which had incorrectly applied a stricter common-law fraud standard, and remitted the case to the Appellate Division for reconsideration under the proper, more lenient standard, significantly favoring the tenant's ability to pursue their claim.
Keywords
Overcharge; Four-Year Lookback Period; RSL § 26-516(a); Tenant Must Demonstrate Sufficient Indicia Of Fraud Or A Colorable Claim Of Fraud; Tenant Need Not Demonstrate Common Law Fraud
Recommended Citation
"Aras v. B-U Realty Corp." (2026). All Decisions. 2138.
https://ir.lawnet.fordham.edu/housing_court_all/2138
