Landlord Seeks Use and Occupancy from Subtenant

February 1, 2003

LVT Number: 16423

Landlord sued tenant corporation after refusing to renew its rent-stabilized lease. The court ruled for landlord, finding that neither tenant corporation nor subtenant corporate officer was entitled to a renewal lease. Tenant appealed and, in the meantime, filed for bankruptcy. This automatically delayed the eviction. When the bankruptcy court later vacated the automatic delay of the eviction, landlord sought a money judgment for use and occupancy from subtenant. The court ruled against landlord.

Landlord sued tenant corporation after refusing to renew its rent-stabilized lease. The court ruled for landlord, finding that neither tenant corporation nor subtenant corporate officer was entitled to a renewal lease. Tenant appealed and, in the meantime, filed for bankruptcy. This automatically delayed the eviction. When the bankruptcy court later vacated the automatic delay of the eviction, landlord sought a money judgment for use and occupancy from subtenant. The court ruled against landlord. The housing court didn't have the authority to ''pierce the corporate veil'' to determine whether subtenant was personally liable for the use and occupancy.

Goldman v. La Follette Corp.: NYLJ, 1/29/03, p. 19, col. 2 (Civ. Ct. NY; Alpert, J)

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