Tenants Sue Landlord's Principal for Rent Refund

Tenant sued landlord, a corporation, and landlord's principal, an individual, to recover a rent refund ordered by the DHCR in a fair market rent appeal case. Tenant claimed that landlord's principal was landlord's alter ego and that landlord's principal used the corporation simply to avoid liability. Landlord's principal argued that tenant couldn't sue him personally. The court ruled against tenant on the claim against landlord, and tenant appealed. The appeals court ruled against tenant, but only because Civil Court didn't have the authority to rule on the issue of piercing the corporate veil. Landlord's principal previously owned the building as an individual and filed a PAR against the DRA's order as an individual. Tenant may have a claim but would have to start a new case in a different court.

Fleetwood v. Haberman: NYLJ, 10/24/05, p. 28, col. 4 (App. T. 1 Dept.; Davis, JP, Gangel-Jacob, Schoenfeld, JJ)