Case Notes by

Richard Siegler & Dale Degenshein, Stroock & Stroock & Lavan

First published: Apr 2008
Residential Comm. of the Bd. of Mgrs. of the Sycamore v. 250 E. 30th St. Owners, LLC

The offering plan disclosed that, even though the condo would be responsible for maintaining the storage bins, all of which were located in an area controlled by the condominium, it was the sponsor that was entitled to reap the financial benefits of selling licenses to the storage bins. The court applied standard rules of contract interpretation when construing all of the documents, found that the documents were unambiguous and that they did not contradict one another and concluded that it had no choice but to hold the parties to their terms. The condominium’s argument that the offering plan, itself, was irrelevant because the conversion had taken place was rejected, at least in part because many of the unit-owners purchased from the sponsor and entered into purchase agreements which adopted and incorporated the terms of the offering plan.

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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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