Sobel v. Higgins

573 N.Y.S.2d 1000 (1991)

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Sobel v. Higgins

New York Supreme Court
573 N.Y.S.2d 1000 (1991)

Darius Dehghan headshot
  • Written by Darius Dehghan, JD

Facts

The City of New York (city) (defendant) had a rent-control law that served the purpose of preserving affordable housing. Under the law, a landlord of a rent-controlled property was generally not permitted to withdraw the property from the rental market. But the law allowed for an exception if a landlord’s net annual return fell below 8.5 percent of the value of the property. Denise Sobel (plaintiff), the landlord of a rent-controlled property in the city, brought suit to challenge the law. Specifically, Sobel contended that the law constituted a regulatory taking, thereby entitling her to just compensation. The city filed a motion to dismiss. The trial court took the motion under advisement.

Rule of Law

Issue

Holding and Reasoning (Schoenfeld, J.)

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Casebooks

Housing Law

Key Terms

  • Takings ClauseA provision of the Fifth Amendment to the United States Constitution that requires just compensation to be paid to the owner of private property taken for public use.
  • Rent Control or Rent StabilizationTwo different methods by which a municipality attempts to ensure a supply of affordable housing. Rent control, the less common method, fixes rent until the occurrence of a specific event (for example, a change in an apartment's tenant), at which point the landlord may increase the rent. Rent stabilization, the more common method, permits the landlord to increase rent periodically, up to a certain percentage of an apartment's base rent.
  • TakingUnder constitutional law, the government’s actual or effective appropriation of a person’s private property, including by substantially interfering with such person’s use and possession of the property. Under environmental law, taking refers to the act of killing, capturing, or otherwise subjecting a wild animal to human control.
  • Regulatory TakingA governmental action that occurs when a significant restriction is placed upon an owner’s use of his property, and requires compensating the owner to maintain justice and fairness.

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