Purchaser of Mortgage Not Liable for Penalties

LVT Number: 11351

HPD sued the purchaser of the building's mortgage for civil penalties and to force correction of nine violations placed against the building in January 1995, which remained uncorrected through November 1996. Prior landlord, made up of several partners, had defaulted under the building's mortgage in 1990; the bank had foreclosed; and a receiver had been appointed. Another real estate company purchased the mortgage in 1994. The court ruled against HPD. There was no proof that the new holder of the mortgage had any connection with or control over the building.

HPD sued the purchaser of the building's mortgage for civil penalties and to force correction of nine violations placed against the building in January 1995, which remained uncorrected through November 1996. Prior landlord, made up of several partners, had defaulted under the building's mortgage in 1990; the bank had foreclosed; and a receiver had been appointed. Another real estate company purchased the mortgage in 1994. The court ruled against HPD. There was no proof that the new holder of the mortgage had any connection with or control over the building.

HPD v. Cupid, Inc.: NYLJ, p. 28, col. 2 (3/19/97) (Civ. Ct. Bronx; Fiorella, J)