Sanctions Awarded Against Tenant Attorney for Fraud and Misrepresentation

(Decision submitted by Alan D. Kucker & Santo Golino of the Manhattan law firm of Kucker Kraus & Bruh, attorneys for the landlord.) Facts: Tenant complained of a rent overcharge. The DHCR ruled for tenant. To recover the full amount of the overcharge, tenant agreed to take rent credits for three years. At the same time, tenant got a court judgment for the total amount of the overcharge. After the credits were completed, tenant stopped paying rent. Landlord sued to evict tenant for nonpayment. Tenant claimed he had a judgment for the rent overcharge, that he was entitled to interest on the judgment, and that his rent credit hadn't yet expired. Landlord then asked the state supreme court to vacate tenant's overcharge judgment, claiming fraud and misrepresentation. Court: Landlord wins. On the date tenant certified to the court clerk that he was entitled to the overcharge judgment, he'd already agreed to take the rent credit. Because tenant did this---and refused to voluntarily vacate the judgment when it was shown that he'd taken the rent credits---the court imposed the maximum $10,000 penalty for fraud and misrepresentation. Tenant was fined $5,000, and his attorney was fined $5,000.

Bogan v. Royal Realty Co.: Index No. 14977/90 (3/7/94) (Sup. Ct. NY; Davis, J) [5-page document]