Herkimer County Industrial Development Agency v. Village of Herkimer

Summary

The New York Court of Appeals held that Herkimer County Industrial Development Agency was not personally liable for unpaid water rents incurred by its tenant manufacturer. The Village of Herkimer’s water regulations provided remedies including a lien on the premises and shutting off water service, but did not authorize personal liability against the property owner. The court reversed the Appellate Division order and answered the certified question in the negative.

Holdings

1. The Water Department Rules and Regulations did not authorize a claim against the Herkimer County Industrial Development Agency for personal liability for the tenant's unpaid water rents.
2. The Agency was not personally liable for the unpaid water rents because the applicable law provided for a lien on the real property rather than personal liability by the owner.

Questions Presented

1. Whether the Village of Herkimer's Water Department Rules and Regulations authorized personal liability against the property owner for unpaid water rents incurred by the owner's tenant.
2. Whether the applicable statutory and regulatory remedies for unpaid water rents were limited to a lien on the property and termination of water service.

Disposition

reversed