Tenant Needn't Give New Security Deposit to New Landlord

Facts: New landlord sued to evict tenant for nonpayment of rent. Landlord sought payment from tenant of a security deposit. Tenant claimed that he had paid the security deposit to prior landlord. Tenant's lease stated that if the building was sold, prior landlord ''may'' transfer security deposits to new landlord, in which event, tenant's right to return of the security deposit will run only against new landlord. Prior landlord didn't transfer security deposits to new landlord. Court: Landlord loses. The lease language imposed no future payment obligation on tenant in the event of a building sale without transfer of security deposits. In addition, under the General Obligations Law, new landlord may be responsible for the refund of tenant's security deposit if he moves out, even if prior landlord didn't turn it over to new landlord.

S&K Properties, LLC v. Harris: NYLJ, 5/28/03, p. 23, col. 1 (Dist. Ct. Nassau; Gartner, J)