Corporate Officer Not Individually Liable for Overcharge

(Decision submitted by Karen Schwartz-Sidrane of the Baldwin law firm of Pennisi, Daniels & Norelli, LLP, attorneys for the landlord.) Tenant complained of a rent overcharge. The DHCR ruled for tenant, and landlord appealed. Landlord was a corporation, but the DHCR's order ruled that one of landlord's corporate officers was personally liable for the overcharge, since she had collected the rent. Landlord claimed this was improper. The DHCR ruled for landlord. In a prior case, a higher court had ruled that another landlord's managing agent wasn't responsible for overcharges because he was merely landlord's agent, and there was no proof that he intended to substitute personally for landlord. In this case, the intent of landlord's corporate officer wasn't made clear in the DHCR's record. So the court sent the case back to the DHCR to review the facts.

Ancorp, Inc. v. DHCR: Index No. 107633/99 (7/29/99) (Sup. Ct. NY; Allen, J) [5-pg. doc.]