Rohlfing v 75 St. Nicholas Place, LLC

Holding The court modified the lower court’s order to join the new owner as a party defendant rather than substituting it for the former owner, because substitution would prejudice the plaintiffs’ ability to seek discovery regarding the former owner’s willful conduct. Carryover liability applies to the current owner for overcharges by prior owners, but substitution is improper where it hinders the tenant’s litigation against the original wrongdoer.

The court’s words

the current owner is responsible "for all overcharge penalties, including penalties based upon overcharges collected by any prior owner"

2026 NY Slip Op 06542, at the official text

Substitution of a new owner should be denied where, as here, it would be prejudicial to plaintiffs

2026 NY Slip Op 06542, at the official text

purpose of carryover liability is to prevent future owners from escaping the consequences of their predecessors' actions

2026 NY Slip Op 06542, at the official text