Prior Owner and Occupant Didn't Qualify for CEEFPA Protection

October 27, 2021

LVT Number: #31652

Hanspal, the prior owner of a building, had obtained a mortgage but defaulted on payments. The mortgagee obtained a judgment of foreclosure and sale. The new owner obtained judgments of possession against prior owner in 2011 and 2018. The prior owner filed a number of bankruptcy petitions and complaints in federal and state courts through 2019. These were all dismissed. A building occupant also filed bankruptcy petitions in 2019, seeking to remain in possession, but these also were dismissed. The court now noted that the occupant showed no proof of lawful occupancy.

Hanspal, the prior owner of a building, had obtained a mortgage but defaulted on payments. The mortgagee obtained a judgment of foreclosure and sale. The new owner obtained judgments of possession against prior owner in 2011 and 2018. The prior owner filed a number of bankruptcy petitions and complaints in federal and state courts through 2019. These were all dismissed. A building occupant also filed bankruptcy petitions in 2019, seeking to remain in possession, but these also were dismissed. The court now noted that the occupant showed no proof of lawful occupancy. The prior owner and the occupant also filed Hardship Declarations, and new owner asked the court to invalidate them.

The court ruled for the new owner. Neither prior owner nor occupant qualified for CEEFPA protection, either as a tenant or lawful occupant owing any financial obligation to the new owner. They had made no payment for decades, which signaled against any CEEFPA protection. The court reissued the judgment of possession and eviction warrant for the new owner without any stay.

Diamond Ridge Partners LLC v. Hanspal: Index No. LT-6528/17, 2021 NY Slip Op 21250, NYLJ No. 1632345095 (Dist. Ct. Nassau; 9/14/21; Hohauser, J)

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