New Landlord Not Bound by Prior Order

Loft tenants and prior landlord ended rent strike by agreeing that landlord would make good-faith efforts to get a residential certificate of occupancy (C of O) and tenants would deposit rent into an escrow account until landlord got the C of O. Landlord then sold the building. Subsequent landlord filed for bankruptcy and sued tenants to recover the rent in escrow. The bankruptcy court ruled that new landlord couldn't recover rent because it hadn't made good-faith efforts to get the C of O. New landlord then bought the building and sued tenants for nonpayment of rent for the months since it bought the building. Tenants claimed landlord was barred by bankruptcy court order from collecting rent. The court ruled against tenants. The bankruptcy court's order only applied to prior, bankrupt landlord. And new landlord claimed it was in compliance with Multiple Dwelling Law. This issue would have to be determined at trial.

West End Estates, Inc. v. Vaughan: NYLJ, p. 23, col. 1 (12/31/97) (Civ. Ct. NY; Shulman, J)