Receiver Not Liable

(Decision submitted by James R. Marino, of the Manhattan law firm of Kucker Kraus & Bruh, attorneys for the receiver.) Tenant complained of a rent overcharge. The DRA ruled for tenant, finding that there was a willful rent overcharge. Landlord appealed. Landlord was a receiver appointed when the building went into foreclosure. The DHCR ruled that the receiver wasn't liable for any overcharge. Under the Rent Stabilization Code, current landlord is generally responsible for all overcharges occurring after April 1, 1984. But if landlord bought the building at a foreclosure sale and couldn't get records of legal rents, landlord won't be liable for any triple damages. A receiver is in the same position as a buyer at a foreclosure sale, so the receiver gets the same treatment. A receiver is therefore only responsible for his share of the overcharge collected. In this case, the receiver took over the building after tenant moved out, so the receiver didn't collect any rent overcharge.

Solomon: DHCR Adm. Rev. Dckt. No. GG 410097 RO (10/28/94) [5-page document]