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.

289 results
First published: Mar 2008
Raimondi v. Board of Managers of Olympic Tower Condominium

The condominium here was willing to use its waiver of a right of first refusal to require a purchaser who had a history of buying, renovating, and flipping apartments in the building to pay an enhanced transfer fee on the resale of the unit. Query whether this type of fee may be demanded by another condominium to institute a de facto transfer fee without relying upon a bylaw provision approved by the unit-owners. The case also reveals yet another condominium that has adopted a flip tax despite the lack of any definitive appellate decision in New York that a flip tax does not create an unreasonable restraint on alienation.

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First published: Jan 2008
Ash v. Board of Managers of The 155 Condominium

It appears as if the lower court attempted to circumvent the plaintiff’s right to free speech by finding that his actions were detrimental to the discovery process and the administration of the court’s calendar. The appellate court has reminded us, however, that a litigant will not be barred from speaking except under the most egregious circumstances. Interestingly, the issue of whether plaintiff’s communications rose to the level of defamation that may allow the board members to sue was apparently not raised. In any event, freedom of speech prevailed here.

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First published: Dec 2007
Breezy Point Cooperative Inc. vs. Young

The Pullman progeny keep coming, about one every year since the landmark decision in 2002. While the number is still small, almost all of the progeny have supported the action of the co-op in terminating proprietary leases for objectionable conduct. Does the limited number of cases suggest the difficulty in establishing objectionable conduct or restraint on the part of co-op boards in applying Pullman to only the most egregious instances of objectionable conduct? Stay tuned!

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First published: Dec 2007
Gunning vs. Regina Metropolitan Co. LLC

Although this case involved a rental building, the issue here, storage of property by a landlord, is equally applicable whether the building is a co-op or a condominium. The entity in whose care the property was left has some responsibility for its return. Even when the standard of care for a gratuitous bailment is relaxed to gross negligence, there may still be liability for lost property. Co-op and condo boards should insure some measure of security and control over goods stored by building occupants outside over their units and should insure that any disposition of stored property is properly documented and recorded to protect the landlord from later claims.

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First published: Nov 2007
Avery vs. Caldwell

This case involved an obviously annoyed judge who did little to conceal her view that the recusal motion was frivolous and without merit. It is hard to see what led to the plaintiff’s decision to seek recusal unless there was some unarticulated belief that the judge was prejudiced against the plaintiff.

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First published: Oct 2007
Joan Messner v. 112 East 83rd Tenants Corp.

This situation happens fairly frequently in Manhattan. An apartment is purchased with an existing greenhouse, which was not part of the original building construction. Somehow the purchaser fails to learn for some time, at least until there are leaks, that this structure is one for which the co-op has no responsibility to repair. Then, a dispute with the co-op ensues over the repair responsibility. In most cases, as here, the co-op will prevail, but there are extenuating circumstances in some cases. The best solution would be for the co-op to explain the repair responsibility to the purchaser at closing, making sure to obtain an acknowledgement at that time from the purchaser that the co-op has no such repair responsibility.

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First published: Oct 2007
Hirschmann vs. Hassapoyannes

This co-op board appears to be in trouble and without a good basis to justify its withdrawal of its approval of the purchase applications. This is a case where sound legal counsel before the board withdrew its approval might have led to a different result and less liability exposure for the board members involved.

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First published: Sep 2007
Zipper vs. Haroldon Court Condominium

This is a clear case where the appellate court strongly disagreed with the conclusion of the trial court. Although lower courts are usually reversed on legal errors, the reversal here seems based in large measure on the facts: a strongly divergent view of the impact of the stench and odors and an evaluation of the extent of the odor level that constituted a nuisance.

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First published: Sep 2007
Graber vs. Sheridan

The Business Judgment Rule remains the controlling precedent for judicial review of unit-owner challenges to a condominium board action. Under the rule, judicial deference is given to board determinations so long as the board acts within the scope of its authority, in good faith, and in the lawful and legitimate furtherance of the condominium’s purpose. This is another in a long line of cases that makes the challenge of a board’s action very difficult.

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First published: Sep 2007
Medows vs. Stern

Although this was not a final decision on the merits, the court was loathe to dismiss the complaint without a further review of the facts. So, the decision is a victory for the plaintiff and may be useful in achieving a settlement between the litigants rather than lead to a prolonged and costly exercise in discovery, further motion practice, and, worst case, a trial.

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