Landlord & Tenant Law

In a personal injury action against an out-of-possession landlord brought by a nurse who slipped and fell on water that leaked through the building's roof, injured plaintiff appealed from the Appellate Division's affirmance, of Supreme Court's dismissal of the complaint. A divided Court of Appeals affirmed, holding that landlord's agreement with HUD requiring landlord to maintain the premises did not subject landlord to liability to the injured plaintiff.

In 1974, landlord entered into a long term lease with current tenant's predecessor. The lease which covered a soon-to-be-constructed nursing home, provided that tenant would maintain the premises, and that landlord had a right, but not an obligation, to enter the premises if tenant failed to maintain and repair. In 1978, the lease was amended to acknowledge that landlord would finance the project through the FHA and that in the event of inconsistencies between the lease and regulatory agreements, the regulatory agreements would control. Landlord then secured a mortgage from Regdor to finance the project. In connection with the FHA-guaranteed mortgage, landlord entered into a regulatory agreement with FHA requiring landlord to "maintain the mortgaged premises … in good repair and condition." As required by the mortgage agreement, landlord established a reserve fund to be used for replacement of structural elements and mechanical equipment. Mortgagee Regdor controlled the reserve fund, to which landlord made monthly contributions. By the terms of the lease amendment, however, only the tenant was entitled to make withdrawals from the reserve fund. When injured plaintiff suffered her accident, she brought this action against, among others, the out-of-possession landlord. The courts below dismissed her action against landlord, and she appealed.