A's Rent ck payable to landlord deposited by B in his bank account. Who can claim the rent money back from B & how?

Question

Sub Tenant A has been giving his rent ck payable to Landlord (LL) every month to Sub Tenant B who then takes that rent ck to LL when B goes to LL to pay his rent. This is the usual practice and understanding between LL, A & B.  
 
This month, as usual, A gave his rent ck payable to LL to B so B would take A’s rent ck to LL. However, LL never received this month’s rent ck from A, so LL followed up with A for rent. 
 
A sent to LL the front & back copy of his canceled ck showing that instead of giving the rent ck to LL, B had deposited LL’s ck in his bank account.  
 
A claims that he has already paid the rent because the rent ck was in the name of LL. He says it is the problem of LL to recover his rent money from B who deposited A’s rent ck even though it was payable to LL.  
 
In this case, if B wrongfully deposited the rent ck payable to LL in his bank acct, who has the right of action to go after B to recover the rent money of A, and what process needs to be followed for recovery?

Delaram Keshvarian · Answer

Thank you for your question! 
 
A subtenant has a contractual relationship with a leasing tenant.  
 
Also, LL is in privity with the subtenant. (Because the subtenant is still in the possession of the property) 
 
LL can sue either the tenant or subtenant to recover the rent. Subtenant A can sue B to recover the rent.  
 
This is merely a discussion of general laws and not legal advice. For legal advice, more specific facts and investigations are needed. I recommend you consult with an attorney for more details.

James L. Arrasmith · Answer

This situation involves several legal issues related to contract law, landlord-tenant law, and potentially fraud. Let's break down the key aspects: 
 
1. Contractual relationships: 
   - A (subtenant) has an agreement with LL (landlord) to pay rent 
   - B (another subtenant) had an informal arrangement to deliver A's checks to LL 
 
2. The issue: 
   - B deposited A's rent check, which was payable to LL, into B's own account 
 
3. Legal considerations: 
 
a) A's position: 
   - A argues they fulfilled their obligation by writing a check to LL 
   - A claims LL should pursue B for the money 
 
b) LL's position: 
   - LL did not receive the rent payment 
   - LL may argue that A is still responsible for ensuring rent is paid 
 
c) B's actions: 
   - B likely committed check fraud by depositing a check not payable to them 
 
4. Potential courses of action: 
 
a) LL's options: 
   - Pursue A for rent, as A is the party contractually obligated to pay 
   - Pursue B for fraud and conversion of funds 
   - File a police report against B for check fraud 
 
b) A's options: 
   - Pay LL the rent to fulfill their contractual obligation 
   - Pursue B for the wrongfully deposited funds 
   - File a police report against B for check fraud 
 
5. Recommended process: 
 
1. LL should formally demand payment from A, as A is the party responsible for rent. 
2. A should pay LL to fulfill their lease obligation. 
3. A (or potentially LL) should file a police report against B for check fraud. 
4. A (or LL if they choose to pursue B directly) should send a demand letter to B for the wrongfully deposited funds. 
5. If B doesn't return the funds, A (or LL) can file a civil lawsuit against B for conversion and potentially fraud. 
 
In this case, both A and LL likely have a right of action against B. However, from a legal standpoint, A is still responsible for ensuring LL receives the rent payment. The arrangement with B was informal and doesn't absolve A of their contractual obligation to LL. 
 
A should pay LL the rent owed, then pursue B for the wrongfully deposited funds. This approach ensures A fulfills their legal obligation to LL while also seeking recovery from B for the fraudulent action. 
 
It's important to note that this situation may involve criminal charges against B for check fraud, which should be reported to the authorities. 
 
For specific legal advice and representation, A and LL should consult with a local attorney specializing in landlord-tenant law and potentially criminal law.

Q: A's Rent ck payable to landlord deposited by B in his bank account. Who can claim the rent money back from B & how?