New Landlord Can't Reopen Rent Overcharge Case

LVT Number: #29734

Tenants sued landlord, claiming fraudulent deregulation of rent-stabilized apartments and rent overcharge. The court ruled for tenants. Landlord and new landlord appealed. The appeals court ruled against them. New landlord claimed that it was denied due process because the lower court decided the case before it was joined to the action. But new landlord bought the building while the court action was pending, was aware of the case, and decided not to intervene despite negotiations to stipulate to join in and the opportunity to respond. New landlord couldn't now relitigate the case.

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Arnold v. 4-6 Bleecker Street LLC: 2018 NY Slip Op 06826 (App. Div. 1 Dept.; 10/11/18; Friedman, JP, Gische, Kapnick, Kahn, Oing, JJ)