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Owner in Default Action Must be Personally Served

Board of Managers of The Ansonia Condominium v. Logan, No. 116761/2007, N.Y. Supr. Ct., June 29, 2010

Assessments: A condominium board of managers’ motion to appoint a receiver to collect assessments while a unit was pending foreclosure was denied for improper service on the unit owner.

Vicki Logan owns a unit in The Ansonia Condominium, which is located in New York City and governed by a board of managers. Logan failed to pay common charges owed on her unit and four other units she owns with another individual, and the board sued her to foreclose its lien. Because other foreclosure actions against the property had dragged on, the board moved, by order to show cause, seeking appointment of a receiver either to rent out the unit at the current market rate, or to collect a reasonable rent–rate from Logan so that monies could be incorporated into the condominium’s budget for operating expenses. Because of the lengthy time of delinquency from Logan, the condominium was suffering a huge financial burden and was in danger of, “being lost, materially injured or destroyed,” because of Logan’s defaults.

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