Building Bought at Judicial Sale

Tenant complained of a rent overcharge. The DHCR ruled for tenant but found that only prior landlord was liable for the rent overcharge. Tenant appealed, claiming that current landlord was responsible for refunding the overcharge and that the DHCR's decision was unreasonable. The court ruled for tenant, and the DHCR appealed. The appeals court ruled for the DHCR. At the time tenant filed his complaint, the building was in receivership based on prior landlord's default. The building was then sold to current landlord at a judicial sale. Current landlord showed that it didn't receive rent history records at the sale, and there was no proof of any collusion or relationship with prior landlord. So under the Rent Stabilization Code, only prior landlord is liable for the overcharge.

Grimm v. DHCR: NYLJ, 3/1/04, p. 29, col. 1 (App. Div. 1 Dept.; Nardelli, JP, Saxe, Rosenberger, Williams, Friedman, JJ)