New Landlord Liable

Tenant complained of a rent overcharge. The DHCR ruled for tenant, finding that tenant was overcharged by $15,000 between 1982 and 1987. Landlord appealed, claiming that he wasn't responsible for overcharges collected before April 1, 1984, because he didn't own the building then. The Rent Stabilization Code limits the liability of landlords for rent overcharges occurring before April 1, 1984, to that portion of the overcharges actually collected by landlord. The court ruled for landlord and sent the case back to the DHCR, which reduced the amount of overcharge landlord had to pay back to $11,000. Tenant appealed, claiming that landlord was a partner in the company that previously owned the building. Landlord claimed he wasn't involved in the building's management when the prior company was landlord. The court ruled for tenant. Since landlord was part of prior landlord company, it was responsible for the full amount of the overcharge. Since landlord also had concealed his involvement with prior landlord company, the court accepted tenant's new proof.

McManus v. DHCR: NYLJ, p. 22, col. 3 (9/2/98) (Sup. Ct. NY; Tolub, J)