Managing Agent Liable for Overcharge

(Decision submitted by Karen Schwartz-Sidrane of the Hewlett, N.Y., law firm of Pennisi Daniels & Norelli, LLP, attorneys for the landlord.) Tenant complained of a rent overcharge. The DHCR ruled for tenant, and managing agent appealed. Managing agent claimed that it was only the corporate landlord's agent and shouldn't be liable for overcharges. The court ruled against managing agent. The corporate shield doesn't apply when illegal conduct is carried out through the corporation or when, as in this case, the individual has complete control over the corporation. Also, it would be unfair to require the tenant to try to recover the overcharge from a corporation without assets.

Ancorp v. DHCR: Index No. 109731/00 (Sup. Ct. NY 10/16/00; Allen, J) [5-pg. doc.]