The Real Deal New York

Tenant sues to collect $24M for unpaid interest on security deposit

February 20, 2013 02:00PM

1100 Madison Ave.

A former resident of 1100 Madison Avenue is seeking a whopping $24 million for interest on a security deposit that his onetime landlord, Elyachar Properties, allegedly refused to hand over almost four decades ago, the New York Post reported. John Sacchi, the 63-year-old plaintiff, moved to New Jersey in 2012 after having a stroke.

He paid $1,800 per month to live in a rent-stabilized one-bedroom unit at 1100 Madison. Sacchi’s lawyer, Stephen Simoni, told the Post that the accrued interest surpasses the $10,000 mark. He is also seeking damages for potentially thousands of other former 1100 Madison tenants, as well as residents at two other Elyachar-owned properties.

Alan Friedman, Elyachar’s lawyer, told the Post that the company possesses canceled checks that prove Sacchi received interest on his security deposit. He said that Elyachar also sent Sacchi a check on Friday for $1,000, which they say is all the interest he can possibly claim they owe him. [NYP]Zachary Kussin

One Response to “Tenant sues to collect $24M for unpaid interest on security deposit”

  1. February 22, 2013 at 8:05 am, Cleo said:

    isn’t the one percent interest covered by the one percent management fee deducted by the landlord?

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