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Successor Liability of UCC Foreclosure Sale Purchasers

As a result of non-eviction co-op conversion plans, many rent-stabilized tenants live in co-operative apartment units. Suppose the apartment's owner overcharges the tenant. May the tenant recover the overcharge from a successor owner who purchased the co-operative unit at a UCC foreclosure sale? That issue, faced by a New York court in <i>Muscat v. Gray</i> (<i>infra</i> page 3 ), raises questions both of statutory construction and public policy.

13 minute read March 03, 2004 at 09:40 AM
By
Paul M. Shupack
Successor Liability of UCC Foreclosure Sale Purchasers

As a result of non-eviction co-op conversion plans, many rent-stabilized tenants live in co-operative apartment units. Suppose the apartment's owner overcharges the tenant. May the tenant recover the overcharge from a successor owner who purchased the co-operative unit at a UCC foreclosure sale?

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