Receiver Not Liable for Overcharge Collected by Prior Landlord

(Decision submitted by James R. Marino of the Manhattan law firm of Kucker Kraus & Bruh, LLP, attorneys for the receiver.) Tenant complained of a rent overcharge. The DRA ruled for tenant, finding that the overcharge was willful, and ordered landlord to refund $56,000. Landlord appealed. In response to landlord's PAR, the building's new receiver appealed, claiming it shouldn't be liable for any overcharges collected before it became receiver two months before the DRA's order was issued. The DHCR ruled for the receiver. Neither the receiver nor its managing agent were responsible for any overcharges collected before taking over the building during a foreclosure proceeding. Still, the receiver must reduce tenant's current rent in accordance with the DRA's order.

222 Thompson St. Assocs.: DHCR Adm. Rev. Dckt. No. FL410312RO (8/13/98) [4-page document]