Cromwell Associates v. Mayor And Council Of Newark

211 N.J. Sup. 462, 511 A.2d 1273 (1985)

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Nature of the Case

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Facts

The City of Newark had a rent control ordinance that had a cap of six percent annual rent increase unless a higher increase was justified. The Council of Newark (D) passed amendments stating that no increase could exceed twenty-five percent in one year. Cromwell Associates (P), who had already received permission for a higher rent, challenged the constitutionality of this rent control because it placed limits on annual rent increases. P claimed that he was denied a fair market rate of return and that the Constitution required regulation to serve a public purpose without being arbitrary or discriminatory.