New Landlord Claims It's Not Responsible for Old Overcharge Finding

Former rent-stabilized tenant sued prior landlord and current landlord (NYU) in 2019, seeking enforcement of a prior court's judgment for rent overcharge in the amount of $132,985 which was issued in 2017 against a previous former landlord. Tenant filed her prior court action in 2010 against the previous landlord. Tenant moved out in 2014 while the prior action was pending against the previous landlord. The prior landlord, named along with NYU in the new lawsuit, bought the building while tenant's lawsuit against previous landlord was pending, and owned the building from 2015 to 2018, when NYU bought the building.

NYU asked the court to dismiss the case before it filed any answer. NYU pointed out that the prior court's order was issued in late 2017 based on previous landlord's default. But no judgment was ever entered. Tenant claimed that she didn't know about the prior order until 2019. NYU also pointed out that it didn't collect any overcharges between the relevant 2004-2014 period. And NYU also claimed that it had no knowledge of the judgment and argued that it wasn't responsible for the previous former landlord's rent overcharge.

The court ruled against NYU, finding it premature to seek dismissal without a further look at the facts. Whether NYU was liable will depend on whether it knew, or should have known, about tenant's prior judgment.

Le Bihan v. 27 Washington Sq. N. Owner LLC: Index No. 153887/2019, 2020 NY Slip Op 31589(U)(Sup. Ct. NY; 5/26/20; Rakower, J)