Receiver Not Responsible for Basement Oil Spill

July 17, 2014

LVT Number: #25632

Building receiver in a foreclosure action asked the court to discharge him and award him a f5 percent commission upon submission of a final report and account. Former landlord objected, claiming that the receiver was responsible for an oil spill in the building basement. The court ruled for the receiver. The building was in disrepair when the receiver was appointed, and he did everything required to maintain and operate the building based on prior court orders.

Building receiver in a foreclosure action asked the court to discharge him and award him a f5 percent commission upon submission of a final report and account. Former landlord objected, claiming that the receiver was responsible for an oil spill in the building basement. The court ruled for the receiver. The building was in disrepair when the receiver was appointed, and he did everything required to maintain and operate the building based on prior court orders. The building's insurance claims adjuster had stated that the oil spill resulted from wear and tear and deterioration of a pipe that failed. The court also granted the receiver attorney's fees and costs.

316 Second Ave. NH v. 316 Second Ave. LLC: Index No. 600217/10, NYLJ No. 1202657553902 (Sup. Ct. NY; 5/20/14; Kenney, J)

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