Tenants Can Pierce Landlord's Corporate Veil

November 15, 2012

LVT Number: #24434

Tenants sued landlord for a rent overcharge. Landlord was a corporation, and tenants asked to pierce the corporate veil so that individual landlord would be responsible for the overcharge. The court ruled for tenants. Another court had previously found that landlord committed fraud by registering a fictitious tenant to inflate the rent-stabilized rent of tenants' apartment. Landlord also admitted that he intermingled personal and corporate finances on improvements he claimed were made to the apartment.

Tenants sued landlord for a rent overcharge. Landlord was a corporation, and tenants asked to pierce the corporate veil so that individual landlord would be responsible for the overcharge. The court ruled for tenants. Another court had previously found that landlord committed fraud by registering a fictitious tenant to inflate the rent-stabilized rent of tenants' apartment. Landlord also admitted that he intermingled personal and corporate finances on improvements he claimed were made to the apartment. Tenants were entitled to recover the overcharge with triple damages and reasonable attorney's fees from the corporate landlord as well as the individual.

Conason v. Megan Holding: Index No. 106560/11, NYLJ No. 1202575976071 (Sup. Ct. NY; 10/10/12; Kenney, J)

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