Case Notes
Case Notes provides insight on one particularly relevant co-op or condo case—clearly explaining what happened, why it’s important, and what lessons can be learned within.
Category
- Access
- Alterations
- Arbitration
- Assessment
- Attorney Fees
- Attorney-Client
- Authority to Sue
- Balcony/Terrace Rights
- Bike Lane
- Books and Records
- Breach of Lease
- Business Judgment Rule
- Bylaws
- Bylaws/House Rules
- Certificate of Occupancy
- Charges/Fees
- Commercial Unit
- Common Element
- Common Elements
- Companion Animal
- Constitutionality
- Construction Defects
- Contracts
- Conversion
- Defamation
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- Discrimination
- Due Diligence
- Easement
- Elections
- Estate
- Eviction
- Eviction/Termination
- Fiduciary Duty
- Fines
- Foreclosure
- Fraud
- Governance
- Gym
- House Rules
- Indemnification
- Indemnification/Subrogation
- Injunction
- Insurance
- Labor Law
- Liability of Directors
- Licenses
- Liens
- Maintenance
- Malpractice
- Management
- Mechanic's Lien
- Misrepresentations
- Motion Practice
- Motion Practive
- Notice of Pendency
- Nuisance
- Occupancy Agreement
- Ownership
- Parking
- Partnership
- Personal Injury
- Pets
- Property Damage
- Proprietary Lease
- Reasonableness
- Receivership
- Release
- Repairs
- Representations
- Sales
- Sponsor
- Statute of Limitations
- Stock/Shares
- Stocks/Shares
- Sublets
- Succession Rights
- Tax
- Third-Party Liability
- Transfers
- Trespassing
- Trial Practice
- Violations
- Warranty of Habitability
- Yellowstone Injunction
- Zoning
First published: May 2022
Baker V. 16 Sutton Place Apts. Corp.If you are dissatisfied with the action of the cooperative or the board, and you believe that the court should review it under Article 78, bring an action immediately, as the statute of limitation is quite short.
Read full articleFirst published: May 2022
When Termination Turns UglyDiscrimination of any type against any group can be a costly claim. Here, the co-op is facing claims from the management company and the individual agent, both of whom alleged discriminatory treatment. The individual director is also facing a separate claim for tortious interference for terminating the management contract, and the cooperative may be subject to almost four years’ worth of contract damages ($201,780) if the contract is found to be wrongfully terminated. Boards must be ever vigilant to ensure that their decisions are not biased against any protected class and made in compliance with the terms of the contracts to which they are parties. The fact that a board changes composition does not give it carte blanche to ignore the terms of agreements signed by an earlier board.
Read full articleFirst published: Apr 2022
Eight DogsBoards should ensure that any change in building rules is well documented and circulated among its residents as well as its employees to avoid confusion in the applicability of rules and obligations.There are a myriad of different regulations and cases applicable to the harboring of pets. Consideration must be given to whether the building rule – whether it prohibits pets altogether, requires permission from the board, or imposes specific restrictions – is clear, enforceable, and applies evenly to all of its residents. Boards must be vigilant in pursuing enforcement of its rule, as failing to do so may lead to a waiver of that right. Boards must also thoughtfully consider and carefully balance the need for a reasonable accommodation with the safety and expectations of the other residents, and craft a mutually acceptable solution. Regardless of a building’s position or regulations governing the existence of the pet in the apartment, or the possible claims of waiver or reasonable accommodation, the board retains the ability to address any nuisance caused by the pet in the apartment, such as excessive barking, aggressive behavior, offensive odors, and property damage, which should not be tolerated.
Read full articleFirst published: Apr 2022
Heavy Wind, Then a TragedyWhere a terrace or balcony is involved, the building, its unit owners and their tenants are responsible for securing its contents or bringing it indoors during inclement weather. Even heavy furniture needs this attention, so that pedestrians below are protected from potentially tragic outcomes. It’s the law, and a common law responsibility. Non-resident renters, as well as the buildings, are bound by it. As for this court decision, it was not a motion on the merits of the claim, and it does not mean that the renters will be liable for the terrible injuries suffered by the plaintiff. A jury may well determine that, if there is fault, it will be apportioned, and the greater fault may be assigned to the Unit Owner, if that is who placed the chair there.
Read full articleFirst published: Apr 2022
Heywood Condominium v. Steven WozencraftGovernance of a condominium can be difficult, as the board does not have the same remedies as in a cooperative. This being the case, every condo board should review the house rules and bylaws to ensure that it has all of the possible remedies that might be available. Careful review of the provisions in regard to the non-payment of common charges is very important, and it should be clear in the governing documents that if a unit-owner is in arrears, nonessential services, including the use of amenities (such as a gym or pool or rooftop garden), will not be available to that unit-owner. It is best to review all remedies in the governing documents, including those involving other day-to-day violations of the house rules and bylaws, such as smoking, noise and odor complaints.
Read full articleFirst published: Mar 2022
Objectionable Conduct: A ‘Pullman” Slip -UpThe so-called Pullman provision in a proprietary lease is a very useful tool when it comes to shareholders who exhibit objectionable conduct. However, in order to properly use this weapon, the co-op must strictly comply with the terms of the provision, as the courts are very aware that terminating a proprietary lease is an extreme remedy. Prior to utilizing this provision, the co-op must review every step required with management and counsel, as any defect in the procedure will result in a dismissal of the co-op’s action.
Read full articleFirst published: Mar 2022
Bad BehaviorSometimes the animosity that grows between neighbors takes on a life of its own, and if not nipped in the bud drives them to self-destructive behavior. Where the parties could not act rationally to realize their interests, the judge had to step in and be the grownup, if for no other reason, to prevent abuse of the court’s resources.
Read full articleFirst published: Feb 2022
Getting Off the BoardWHAT YOU NEED TO KNOW As is always the case, it is vital to follow the bylaws, which the Esplanade Board did in exercising its right to remove directors for cause.
Read full articleFirst published: Feb 2022
Getting on the BoardThis is a good example of the need to comply with a building’s governing documents when determining whether an election was properly held.
Read full articleFirst published: Feb 2022
Water LeakUnlike a co-op shareholder, a condo owner is not a lessee under a proprietary lease, and is not protected by the statutory warranty of habitability. Under this protection, a co-op shareholder can withhold rent if his or her apartment becomes unlivable due to damage, but a condo owner does not have that right. The condo owner can't withhold common charges, even if there is a damage claim for alleged water leaks. But note that the Judge, by holding the money judgment in abeyance, essentially gave the unit-owner a reprieve on paying common charges while the lawsuit was pending, undercutting the principle that was supposedly being exalted. It is a curious decision, one that properly states and applies the law but then, in a twist of fate worthy of M. Night Shyamalan, undoes it all in the penultimate sentence.
Read full article