Interest Must Be Returned to Escrow Account

February 1, 1993

LVT Number: 6720

During the course of a long-standing rent strike, an officer of tenants' association withdrew interest from the escrow account holding tenants' rent payments. Landlord asked the court to direct that the money be put back into the account. The court ordered that the money be deposited back into the account. Landlord appealed, asking for a more specific order. The appeals court specifically directed the officer of the tenants' association and the attorneys for tenants' association to be jointly and separately responsible for redepositing the money.

During the course of a long-standing rent strike, an officer of tenants' association withdrew interest from the escrow account holding tenants' rent payments. Landlord asked the court to direct that the money be put back into the account. The court ordered that the money be deposited back into the account. Landlord appealed, asking for a more specific order. The appeals court specifically directed the officer of the tenants' association and the attorneys for tenants' association to be jointly and separately responsible for redepositing the money. The officer had made the withdrawals to pay legal fees and reimbursements to himself at the attorney's suggestion.

[Ansonia Associates v. Ansonia Tenants Coalition: NYLJ, p. 23, col. 3 (1/21/93) (App. Div. 1 Dept.; Sullivan, JP, Wallach, Ross, Asch, JJ)].

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