Tenants Can Raise Claim Against Receiver

March 1, 1997

LVT Number: 11336

Facts: Bank foreclosed on landlord's building and appointed receiver to collect rents and operate the building. Tenants stopped paying rent, claiming breach of the warranty of habitability. Receiver sought ``writ of assistance'' from State Supreme Court. The court ruled for landlord receiver, finding that it was an officer of the court, and ordered tenants to pay rent. Tenants appealed. Court: Tenants win. The receiver was in position of landlord and was required to maintain the building.

Facts: Bank foreclosed on landlord's building and appointed receiver to collect rents and operate the building. Tenants stopped paying rent, claiming breach of the warranty of habitability. Receiver sought ``writ of assistance'' from State Supreme Court. The court ruled for landlord receiver, finding that it was an officer of the court, and ordered tenants to pay rent. Tenants appealed. Court: Tenants win. The receiver was in position of landlord and was required to maintain the building. The fact that the dispute arose in the context of a foreclosure proceeding rather than a housing court eviction proceeding didn't matter. Receiver had legal duty to keep the building in good repair.

Fourth Federal Savings Bank v. 32-22 Owners Corp.: NYLJ, p. 25, col. 3 (2/28/97) (App. Div. 1 Dept.; Murphy, PJ, Wallach, Williams, Andrias, JJ)

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