The failure of the co-op in this case to promptly abate a mold condition of which it was aware and responsible to repair for several months ended up costing the co-op more than it would have if it had acted promptly. As a result, it was forced to incur not only its own legal expenses to deal with the abatement, but also those of its tenant-shareholder and the subtenant-occupant of the damaged apartment. The lesson here for co-op and condo boards and their managers is to promptly remediate mold conditions once they are disclosed. Delay only increases the cost of solving the problem and increases the legal expenses.
Read full articleThe result here was most unusual. In American jurisprudence, each party normally bears its own legal expenses. Occasionally, by contract, this rule can be varied so that either one party or another bears the expenses of both parties. Often, the proprietary lease so provides. In this case, the lease was not the basis. Rather, it was the combination of the federal court venue and the shareholder's contempt of court, a unique situation.
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