Tenant Can Enforce Order Against New Landlord

April 30, 2001

LVT Number: 14928

Tenant filed a fair market rent appeal. The DHCR ruled for tenant and ordered prior landlord to refund $37,000. Tenant later sued new landlord to recover the full refund. New landlord claimed that it wasn't responsible for the refund. The court and appeals court ruled against landlord. By law, new landlord is responsible for any overcharge collected by prior landlord after April 1, 1984. And if new landlord had reviewed the DHCR's records before buying the building, it should have known that the refund had been ordered.

Tenant filed a fair market rent appeal. The DHCR ruled for tenant and ordered prior landlord to refund $37,000. Tenant later sued new landlord to recover the full refund. New landlord claimed that it wasn't responsible for the refund. The court and appeals court ruled against landlord. By law, new landlord is responsible for any overcharge collected by prior landlord after April 1, 1984. And if new landlord had reviewed the DHCR's records before buying the building, it should have known that the refund had been ordered.

Fullan v. 142 E. 27th St. Assocs.: NYLJ, 4/16/01, p. 22, col. 5 (App. Div.1 Dept.; Mazzarelli, JP, Andrias, Saxe, Buckley, Friedman, JJ)

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