New Landlord Can't Recoup Overcharge Award from Prior Landlord

New landlord sued prior landlord to recover a rent overcharge amount that the DHCR ordered new landlord to refund to tenant. The court ruled for new landlord, and prior landlord appealed. The appeals court ruled for prior landlord. New landlord bought the building in 1987, while tenant's DHCR complaint was pending. New landlord could have discovered tenant's rent history and any pending DHCR complaints before buying the building. And new landlord could have negotiated an adjustment in the building purchase price or made a written agreement with prior landlord for reimbursement in the event of an overcharge finding. New landlord didn't do so, and there was no implied promise from prior landlord to pay for the overcharge.

Helfand v. Sessler: NYLJ, 6/14/05, p. 23, col. 1 (App. T. 1 Dept.; McCooe, JP, Davis, Gangel-Jacob, JJ)