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
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First published: Jan 2006
315-321 Eastern Parkway Development Fund Corp. vs. Wint-HowellThe statutory warranty of habitability was enacted by the state legislature in 1975 to insure that all tenants, including co-op owners, could enjoy safe and comfortable housing and has been a potent weapon for tenants ever since by providing rent abatements when the statutory standard was not provided by landlord. Here, the co-op embarked on needed renovations to its property for the benefit of all unit owners. Since the work was necessary, under the Business Judgment Rule applied by the court, great deference was given to the decision of the board to undertake the repairs without requiring some sort of rent abatement for the inconvenience of a few unit-owners caused by the renovations.
Read full articleFirst published: Jan 2006
Inwood Park Apartments Inc. vs. Coinmach Industries Co.The trial court decision discussed above was recently upheld by an appellate court which reasoned that the right of first refusal did not save the right upon which Coinmach relied, since that right under the subject lease, if not exercised by Coinmach before the lease’s expiration, could be exercised indefinitely thereafter and without limitation as to the time within which the exercise was accomplished. Permitting Coinmach a temporally unrestricted right would constitute an unreasonable restraint upon the alienation of property. The appellate court perceived no beneficial purpose to be served by effectively requiring the residential co-op to retain Coinmach’s laundry room services indefinitely, regardless of their quality.
Read full articleFirst published: Dec 2005
Duran v. Essex House CondominiumThe issue here concerned who was in control of the space in a condominium building between the ceiling and floor of two units. Either it was part of the lower unit or it was within the common elements. The facts were in dispute. It is usually difficult to obtain a preliminary injunction because of the requisite burden of proof. In this case, the relief sought was denied leaving the plaintiff to establish at a trial on the merits his entitlement to such relief, requiring a more expensive effort.
Read full articleFirst published: Dec 2005
Latoni vs. Sherman Square Realty Corp.The case is not the last word on this matter and the results may change after discovery is permitted. However, it illustrates the plight of individual board members in considering apartment transfer applications. Without good legal advice, it is not difficult to run afoul of statutory prohibitions on discrimination against protected classes of individuals.
Read full articleFirst published: Nov 2005
Board of Managers of Holiday Villas Condominium I v. BautistaWhile the federal government may be seeking to facilitate the transmission of TV signals, the legislation to achieve this result limits the right of a subscriber to install a satellite dish to areas under the exclusive control of the subscriber. The law seeks to balance the right of the subscriber to receive the signal with the right of the condominium to control the use of common areas for the benefit of all unit-owners.
Read full articleFirst published: Nov 2005
DeSoignies v. Cornasesk House Tenants’ Corp.This case illustrates the ongoing conflict between a board’s power to enact house rules and shareholders’ rights to control fundamental changes that amount to a proprietary lease amendment requiring shareholder approval. It suggests that rule-making may be counterproductive when subletting requests can be reviewed and approved on a case-by-case basis without a lease amendment.
Read full articleFirst published: Oct 2005
Cohen v. Seward Park Housing Corp.To win a case on a motion to dismiss the complaint is not easy. The motion looks solely to the complaint and assumes that all of the statements therein are true. In such instance, trial judges are reluctant to grant the relief sought – preferring to view additional evidence to be developed in the case by both sides. A party making a motion to dismiss the complaint – not to be confused with a motion for summary judgment which addresses the complaint, the answer, and other evidence – usually must be highly confident of its legal position.
Read full articleFirst published: Sep 2005
Sit v. SchnapsThis case reaffirms established co-op law that a purchaser of an apartment that is approved subject to compliance with certain conditions may cancel the purchase agreement and receive a full refund of the contract deposit if those conditions are not met. This is a harsh and sometimes unexpected dilemma for a co-op seller who frequently has waited for many weeks to learn if a co-op board approves his purchaser. It suggests that a seller has a strong interest in seeing that his purchaser is well-qualified to acquire the apartment and likely to be approved by the board. This issue should be considered before a seller signs a sale contract.
Read full articleFirst published: Sep 2005
Litwack v. Plaza Realty InvestorsThe coincidence of the decisions in the two cases with different results led to reconsideration of the lower court case which was at variance with the one decided by the appellate division. As a result, the decisions were reconciled and the Litwack action was dismissed based on Beck. Despite this reconciliation, which provides that actual knowledge or notice of a mold condition itself is required to impose liability on a landlord, a landlord’s liability for mold conditions remains an emerging legal issue and further decisions can be expected. In the interim, steps can be taken by co-op and condo managers and boards to control both damage and liability. Preventive maintenance and prompt and appropriate remediation, using experienced specialists where indicated, are key. Identifying and repairing the source of water leaks will prevent recurrence
Read full articleFirst published: Jul 2005
Madison Medical Building v. Properties & Equities International Ltd.It is obvious that the condominium board here did not want a Subway restaurant in the building. The board raised all types of objections to bar the restaurant's opening - none of which the court found to have merit. There was no danger to the building or its occupants. The ultimate remedy for the board would have been to exercise its right of first refusal to lease the premises intended for Subway. Of course, that would have required some risk and expenditure for the board that it was seeking to avoid. With the cost of litigation factored in, it might have been smarter for the board to have exercised the right of first refusal in the first place.
Read full article