Gambaro v. 1917 ACP Owner LLC

Background

Jeanette Gambaro and Joseph Gambaro brought a Fair Housing Act action against 1917 ACP Owner LLC, Bruce Lederman, Sharp Management Corp., and the Clearstone Group Inc. They allege that the defendants failed to reasonably accommodate them while the sole elevator in their apartment building was inoperable. The defendants moved to dismiss the Second Amended Complaint.

Issue

The defendants argued in part that the claims against Bruce Lederman could not proceed because he had been appointed temporary receiver of the property by the New York Supreme Court for New York County on May 11, 2021. Plaintiffs had requested permission to sue Lederman from that court on March 5, 2023, but the request remained undecided.

The court explained that a receiver is an officer of the appointing court and generally cannot be sued without that court’s consent. The requirement is a condition that must be satisfied before the case proceeds against the receiver; it does not deprive the federal court of jurisdiction. The court identified three possible responses when permission has not been obtained: allowing the case to continue subject to the appointing court’s later order, staying the case while permission is sought, or dismissing the case without prejudice to refiling after permission is obtained.

Ruling

The court chose to stay the action while plaintiffs’ application for permission to sue Lederman was pending. The court noted the parties’ representation that the elevator had since been replaced and was operating. The parties were directed to notify the court by letter when the New York Supreme Court ruled on the application, and the Clerk was directed to stay the action pending further order from Judge Ronnie Abrams.

The order does not decide the Fair Housing Act claims or state a final ruling on the defendants’ motion to dismiss.