relief sought herein is tantamount to rendering a declaratory judgment, which is beyond the
jurisdiction of this Court. Additionally, counsel for Broadway LLC maintains that the
documentary evidence submitted with his affirmation establishes that Broadway LLC transferred
all security deposits to petitioner and that there is no other evidence to the contrary. Further,
counsel for Broadway LLC argues that the Civil Court has no jurisdiction over security deposits,
and that such funds are not recoverable in a nonpayment proceeding.
DISCUSSION
Under General
Obligations Law §7-103, money advanced on a contract for the use or rental of real
property as security for performance of such contract continues to be the tenant's property which
shall be held in trust without being commingled with the landlord's personal assets.
In the event the owner or landlord conveys property or assigns the lease to another, the
owner or landlord must turn over to the grantee or assignee the tenant's security deposit and
notify the tenant of such transaction (see General Obligations Law §7-105[1]).
Once the owner [*3]or landlord turns over the security deposit to
its grantee or assignee, the landlord is relieved from liability to the tenant for repayment, and the
transferee of such deposit is responsible to the tenant for its return (see General
Obligations Law §7-105[2]).
"[T]he return of a security deposit is viewed as a collateral agreement that does not run with
the land and transferees of the land would not be liable for the security deposit unless they
actually received the money or otherwise covenanted to pay it" (Bayside Plaza Assoc. LLC v
Deli Bizz 24 Inc., 14 Misc 3d 1233[A] [Civ Ct, Queens County 2007]).