Tenants Can Raise Claim Against Receiver

June 30, 1995

LVT Number: 9852

Facts: Bank sued landlord in foreclosure. A receiver was appointed while the case was pending and tenants were directed to pay all rents to the receiver. The receiver later asked the court to compel tenants to pay all past due rents and to authorize evictions. Tenants claimed breach of the warranty of habitability. The receiver argued that tenants couldn't raise these claims against him. Court: Receiver loses. Real Property Law Section 235-b covers receivers as landlords. The receiver can proceed in housing court with nonpayment proceedings against tenants.

Facts: Bank sued landlord in foreclosure. A receiver was appointed while the case was pending and tenants were directed to pay all rents to the receiver. The receiver later asked the court to compel tenants to pay all past due rents and to authorize evictions. Tenants claimed breach of the warranty of habitability. The receiver argued that tenants couldn't raise these claims against him. Court: Receiver loses. Real Property Law Section 235-b covers receivers as landlords. The receiver can proceed in housing court with nonpayment proceedings against tenants. So tenants are free to raise claims concerning breach of the warranty of habitability.

Apple Bank for Savings v. One Arden St. Associates: NYLJ, p. 31, col. 5 (6/14/95) (Sup. Ct. NY; Saxe, J)

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