Managing Agent Liable for Overcharges Resulting from Fair Market Rent Appeal

Facts: Former tenant sued landlord's former managing agent for a $7,000 judgment based on a DHCR order granting tenant's fair market rent appeal. Managing agent claimed it wasn't responsible because it wasn't named in tenant's complaint and it didn't have a full and fair chance to respond. Tenant's complaint had been filed against landlord. The DHCR's order named landlord in care of the managing agent. Court: Tenant wins. The judgment can be binding on landlord and the managing agent because the managing agent was ''in privity'' with landlord. The Rent Stabilization Code defines an ''owner'' to include both landlord and landlord's managing agent. The code further requires the ''owner'' to refund any excess rent ordered to be refunded in response to a fair market rent appeal.

Rogers v. Rhodes Bldg. Mgmt., Inc.: NYLJ, p. 27, col. 3 (3/25/98) (Civ. Ct. NY; Friedman, J)