Reichenbach v. Jacin Invs. Corp., 2025 NY Slip Op 02023 (2025)

Citation: Reichenbach v. Jacin Invs. Corp., 2025 NY Slip Op 02023 (2025)
Parent Document: Reichenbach v. Jacin Invs. Corp., 2025 NY Slip Op 02023 (2025)
Jurisdiction: New York (state)
Effective Date: 2025-04-03
Original Source: https://www.courtlistener.com/opinion/10491002/reichenbach-v-jacin-invs-corp/ ↗

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In determining that a fraudulent rent permitted a review of the rent history beyond the four-year lookback period, the Court of Appeals in Thornton (5 NY3d 175) reasoned that the purpose of the strict lookback period "was to alleviate the burden on honest landlords to retain rent records indefinitely, not to immunize dishonest ones from compliance with the law" (id. at 181 [internal citation omitted]). In Matter of Grimm (15 NY3d 358), the Court of Appeals determined that Thornton "applies in a situation where it is alleged that the standard base date rent is tainted by fraudulent conduct on the part of a landlord" (id. at 362). The new amendments direct courts to return to this line of cases in order to determine whether "a colorable claim that an owner has engaged in a fraudulent scheme to deregulate a unit" exists in the "totality of the circumstances, . . . provided that there need not be a finding that all of the elements of common law fraud" were established in making the determination (L 2024, ch 95, § 2-a).

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