Defendant John Pearse passed away on June 21, 2005, and his entire interest in the property passed to his wife, codefendant Janina Pearse. The claims against John Pearse are held in abeyance and not reached herein, for it is well settled that the death of a party stays the action as to the decedent and—pending the substitution of a legal representative—any determination would be a nullity (see CPLR 1015). Accordingly, the court's consideration is limited to the claims against defendant Janina Pearse.
Security Deposit Statutory Obligation
A landlord's obligation in relation to a security deposit is clearly spelled out in General Obligations Law § 7-103 (1), which provides that security deposits tendered in relation to an
"agreement for the use or rental of real property as security . . . shall continue to be the money of the person making such deposit or advance and shall be held in trust by the person with whom such deposit or advance shall be made and shall not be mingled with the personal moneys or become an asset of the [*2]person receiving the same" (emphasis added).[FN1]
The statute's directions are strictly construed (Fore Improvement Corp. v Selig, 278 F2d 143, 146 [2d Cir 1960] [the security deposit law "is emphatic in its language and is declarative of the public policy of New York State" and "such statutes frequently have to be literally construed to obtain the desired compliance"]).