Case Notes in 2025

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First published: Jan 2025

TAKEAWAY This case demonstrates how a well-crafted alteration agreement can protect a cooperative or condominium from legal liability and costs of defense when, as happens frequently enough, an apartment renovation is unsuccessful. Here, the shareholder’s duty to indemnify and hold the cooperative harmless for work performed by her contractor shielded the board in the absence of insurance. Where was the insurance? The alteration agreement explicitly required the shareholder to produce the contractor’s certificates for $1 million in liability insurance and $500,000 workmen’s compensation insurance naming the cooperative, management, and the shareholders as additional insureds. Unfortunately, property manager Douglas Elliman claimed – suspiciously, according to Mandracchia – that the certificates were lost and could not be located. In any event, boards should have their alteration agreement forms reviewed by counsel, especially if such a review has not been conducted recently, to ensure that the alteration agreement contains appropriate protection for the building and the board and incorporates current developments in the law.

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Case Notes in

2025

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First published: Jan 2025