President of Corporate Tenant Not Liable for Paying Use and Occupancy

LVT Number: 17437

Landlord sued to evict corporate tenant from a rent-stabilized apartment, claiming that the corporation had no right to a renewal lease. The court ruled for landlord. Landlord later sued the corporation and its president individually for use and occupancy at a fair market rate. The president said he wasn't responsible for paying the corporation's rent. The court ruled against landlord. Landlord appealed and lost. The president wasn't the corporation's subtenant; he lived in the apartment as the corporation's authorized agent.

Landlord sued to evict corporate tenant from a rent-stabilized apartment, claiming that the corporation had no right to a renewal lease. The court ruled for landlord. Landlord later sued the corporation and its president individually for use and occupancy at a fair market rate. The president said he wasn't responsible for paying the corporation's rent. The court ruled against landlord. Landlord appealed and lost. The president wasn't the corporation's subtenant; he lived in the apartment as the corporation's authorized agent. Any renewal leases the president signed were in his role as corporate officer. Rent was always paid by corporate check. So landlord can't sue the president individually for use and occupancy.

Goldman v. LaFollette Corp.: NYLJ, 6/7/04, p. 27, col. 6 (App. T. 1 Dept.; McCooe, JP, Davis, Gangel-Jacob, JJ)