Case Notes in

2003

First published: Dec 2003
Brodsky v. Board of Managers of Dag Hammarskjold Tower Condominium

While notarized proxies may be required in some instances, this is rarely done. This case makes clear that if it is to be done it should be done by amendment of the governing documents – usually the bylaws, which in the case of many co-ops and most condominiums requires a vote of the owners. What is less certain is the court’s decision to require a new election for the six incumbent board of managers. The court did not have to decide this issue, but was obviously troubled by the failure to elect any of these managers at meetings because there was never a quorum of unit-owners present.

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First published: Dec 2003
2682 Kingsbridge Associates, LLC v. Martinez

While this case involved a rental building, the result is equally applicable to a co-op, where general principles of landlord/tenant law are applicable. The issue is one of exclusive control by the tenant. Without that, the tenant’s rights to a satellite TV dish are restricted. The same principle should apply in the condominium building if the satellite dish is placed on a common element, other than a limited common element such as a terrace or balcony, where the unit-owner has the right of exclusive use.

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First published: Nov 2003
Simon v. 160 West End Avenue Corp.

Here, the plaintiff was without a remedy. Not only was the board’s action within its discretion, but also the statute of limitations for defamation had run. In addition, the purchasers failed to demonstrate that under applicable law they were members of a protected class which would shift to the co-op the burden of proof to justify the board’s rejection.

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First published: Nov 2003
Board of Managers, Kingsley Condominium v. Villinvestment A.V.V.

By Richard Siegler, Stroock & Stroock & Lavan Increasingly, cases involving a condominium board’s right of first refusal are being reported. As more boards decide to exercise such rights, they are learning the pitfalls of not following precisely the procedures to accomplish this result. Rights of first refusal are limited restraints on alienation permitted by virtually all states. As such, they are always strictly construed and the rule is still caveat emptor!

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First published: Oct 2003
Michaelson v. Albora

The case illustrates the fiduciary duty of board members that is owed to both co-op shareholders and condo unit-owners when it comes to business dealings. A board cannot permit some unit-owners to get a "better" deal than others. If this happens, legal recourse is available, swift and unsympathetic.

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First published: Oct 2003
157 East 57th Street LLC v. Birrenbach

Although this case did not actually involve either a cooperative or condominium building, it might have and the issues would not be different. This case deals with one of the newest and hottest topics in real estate management. Mold, although arguably a less serious a hazard to most people than asbestos or lead paint, is the latest environmental hazard to receive considerable attention. Moreover, for people with severe allergies or asthma it can be a serious, even life- threatening matter. While mold has existed for centuries, there is a new awareness that water conditions in a residential building must be remediated promptly after occurrence so as to eliminate and prevent the development of mold. This requires well-managed co-op and condo buildings to establish operations and maintenance programs to deal with water conditions before they become mold problems.

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First published: Sep 2003
Amalgamated Dwellings Inc. v. Szold & Brandwen, P.C.

The message here is to review invoices for legal services promptly when submitted after the services are rendered or disbursements incurred. The court was not sympathetic to the co-op's efforts to question the appropriateness of legal fees paid many years ago before there was some estrangement in the attorney-client relationship.

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First published: Sep 2003
445/86 Owners Corp. v. Charles Haydon

It appears that the co-op pursued the wrong remedy. Instead of seeking to collect a sublet fee for the sole occupancy of an apartment by the shareholder's mother-in-law, it should have brought an action to end the unauthorized use of an apartment by a family member where the shareholder of record was absent, a violation of most proprietary leases.

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First published: Aug 2003
Saxon Garage Corp. v. Regency East Apartment Corp.

What triggered this action for trespass after a long established practice is uncertain. It may have been that the garage was seeking to exact money from its co-op landlord. Perhaps business was in the doldrums and the garage was trying to persuade its landlord to reduce the rent. Certainly, the effort was unsuccessful.

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First published: Jul 2003
Lesal Associates v. Board of Managers, Downing Court Condominium

This is not an unusual case where a board of managers, dominated by the interests of residential unit-owners and controlling a substantial majority on the board, seeks to reallocate common charges to lessen the burden on the residential unit-owners. Here, the effort failed and the court refused to sanction the reallocation. The question is can efforts to achieve this goal elsewhere succeed because the non-residential unit-owners are loathe to challenge the board?

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