By Aaron Shmulewitz
PROBLEMATIC SHAREHOLDER CANNOT STOP CO-OP FROM EVICTING HIM UNDER PULLMAN DOCTRINE
Haimovici v. Castle Village Owners Corp. Supreme Court, New York County
COMMENT—-The Court held that the Board had followed its prescribed procedures, and the shareholder had ample opportunity to cure his bad behavior.
PURCHASER CAN SUE HDFC CO-OP FOR HOUSING DISCRIMINATION, BASED ON INFERENTIAL EVIDENCE
Gibson v. Castillo Supreme Court, New York County
CONDO BOARD HAS RIGHT TO INSPECT UNIT
Board of Managers of 145 Americas Condominium v. 145-Seven LLC Supreme Court, New York County
SHAREHOLDER’S INDEMNITY OBLIGATIONS TO CO-OP AND MANAGING AGENT UNDER ALTERATIONS AGREEMENT VOIDED BECAUSE INDEMNITY CLAUSE OVERLY BROAD
Sanchez v. Madison 79 Associates, Inc. Supreme Court, Kings County
CO-OP SHAREHOLDER NOT RESPONSIBLE TO REPAIR LEAK DAMAGES FROM ATRIUM DOORS INSTALLED BY PRIOR SHAREHOLDER
131 Perry Street Apartment Corporation v. Clauser Supreme Court, New York County
COMMENT—-The current shareholder never signed an assumption of predecessor’s alterations agreement. Boards should require assumption of alterations agreements as a condition for closing.
CO-OP LIEN FOR UNPAID MAINTENANCE SUPERIOR TO BANK LIEN, UNDER UCC AND RECOGNITION AGREEMENT
JP Morgan Chase Bank, N.A. v. 476 Broadway Realty Corp. Supreme Court, New York County
CONDO UNIT OWNERS TIME-BARRED FROM SUING SPONSOR PRINCIPALS FOR NOT SELLING UNITS AT MARKET
Shomshonov v. Board of Managers of The Heights Condominium Supreme Court, Kings County
SUIT AGAINST CONDO DISMISSED FOR FAILURE TO SERVE PRESIDENT OR TREASURER, AS REQUIRED BY GENERAL ASSOCIATIONS LAW
Sherman v. The Watchcase Factory Condominium Supreme Court, New York County
CONDO CAN SUE SPONSOR AND PRINCIPALS FOR FRAUD IN CONSTRUCTION DEFECTS CASE
Board of Managers of 87-89 Leonard Street Condominium v. Leonard Street Owner, LLC Supreme Court, New York County
CONDO UNIT OWNER CAN SUE BOARD OVER PERGOLA BAN
Starke v. Board of Managers of 20 Pine Street Condominium Supreme Court, New York County
COMMENT—-The business judgment rule did not bar the suit, because questions of fact existed as to the Board’s reasons for the ban.
CO-OP SHAREHOLDER NOT ENTITLED TO JURY TRIAL, DUE TO WAIVER PROVISION IN PROPRIETARY LEASE
Mazzocchi v. Windsor Owners Corp. United States District Court, SDNY
CONDO CAN SUE SPONSOR PRINCIPALS FOR BREACH OF FIDUCIARY DUTY, BUT NOT FOR DIRECT LIABILITY FOR CONSTRUCTION DEFECTS
Board of Managers of Petit Verdot Condominium v. 732-734 WEA, LLC Supreme Court, New York County
CONDO CAN INSTALL HEATERS NEAR UNIT OWNER’S PARKING SPACE IN GARAGE
Aydin v. Board of Managers of The Decora Condominium Supreme Court, Kings County
CONDO UNIT OWNERS CANNOT ENJOIN NOISY USE OF PUBLIC FACILITY CONDO UNIT
Samaha v. Brooklyn Bridge Park Corporation Supreme Court, Kings County
COMMENT—-Disputed noise levels, unclear balancing of equities.
COMMERCIAL CONDO UNIT OWNER CANNOT SUE BOARD OVER COOKING PROHIBITION IN CONDO DEC
Arisa Realty Co. XI LLC v. Board of Managers of The Leonard Condominium Supreme Court, New York County
COMMENT—-The Commercial Unit Owner had knowledge of the ban when it purchased the unit.
CONDO UNIT OWNER NOT ENTITLED TO INJUNCTION COMPELLING CONDO TO REPAIR ROOF
Green Coaster Nabisco, LLC v. The Residential Board of Managers of Two Twenty Five Rector Place Condominium Supreme Court, New York County
COMMENT—-The injunction was denied because the alleged harm was compensable by money, and the injunction would have been the ultimate relief sought in the suit.
DAUGHTER OF MITCHEL-LAMA CO-OP SHAREHOLDER CAN ENJOIN CO-OP’S SALE OF HER APARTMENT UNDER CONVERSION PLAN
Bass v. WV Preservation Partners, LLC Appellate Division, 1st Dept.
CONDO UNIT OWNER RESPONSIBLE FOR PLUMBING REPAIRS BECAUSE PIPE WAS WITHIN HIS UNIT
Brito v. Board of Managers Maple Arms Condominium Appellate Division, 2nd Dept.
UNIT OWNER CAN SUE CONDO FOR FAILING TO TAKE ACTION TO STOP NOISE FROM UPSTAIRS NEIGHBORS
Bacharach v. Board of Managers of The Brooks-Van Horn Condominium Supreme Court, New York County
COMMENT—-Curiously, the Court held that the Unit Owner couldn’t sue the upstairs neighbor for private nuisance, as the noise (children running and jumping) was normal apartment living sounds.
TRO ISSUED TO PREVENT “COMPETING” CO-OP BOARD FROM ACTING ON BEHALF OF CO-OP
Tower Owners Inc. v. Loev Supreme Court, Kings County
COMMENT—-Disputed election, warring factions; for some reason, these cases arise disproportionately in Brooklyn.
SON OF DECEASED SHAREHOLDER IN MITCHEL-LAMA CO-OP NOT ENTITLED TO SUCCESSION RIGHTS
Kralik v. New York City Department of Housing Preservation & Development Supreme Court, New York County
COMMENT—-The son couldn’t prove that he had lived there with the shareholder.
HDFC SHAREHOLDERS CANNOT SUE MANAGING AGENT FOR BREACH OF FIDUCIARY DUTY
Plato v. Charles Supreme Court, New York County
COMMENT—-The Court held that the managing agent owed a fiduciary duty to the co-op, not to shareholders.
SHAREHOLDER ENTITLED TO ATTORNEY FEES IN MOLD SUIT AGAINST CO-OP
Hartman v. WVH Housing Development Fund Corporation Appellate Term, 1st Dept.
CONDO CAN SUE SPONSOR PRINCIPAL FOR BREACH OF FIDUCIARY DUTY DUTY
Board of Managers of The 432 Park Condominium v. 56th and Park (NY) Owner, LLC Supreme Court, New York County
COMMENT—-The principal was on the Board, and made binding decisions in a dispute between the Board and the sponsor.
CONDO UNIT OWNER NOT ENTITLED TO INJUNCTION TO COMPEL SPONSOR TO REPAIR ROOF LEAK
Schwartz v. El Ad US Holding, Inc. Supreme Court, New York County
COMMENT—-Because the injury was compensable by money, and repairs were already underway.
UNIT OWNER CANNOT ENJOIN NOISY USE OF HOTEL COMPONENT OF BUILDING
Montgomery v. 215 Chrystie LLC Appellate Division, 1st Dept.
COMMENT—-The potentially noisy use of that space had been disclosed in the offering plan when the plaintiff bought.
CONDO BOARD HELD IN CONTEMPT FOR MISLEADING COURT
Park 56 LLC v. Board of Managers of The Parc Vendome Condominium Supreme Court, New York County
COMMENT—-The Court’s decision is a blistering hammering of the Board’s actions over 16 years.
VALID GIFT OF HDFC CO-OP APARTMENT NOT MADE BY NOW-DECEASED BROTHER
Rivera v. 98-100 Ave. C HDFC Appellate Division, 1st Dept.
CO-OP GRANTED SUMMARY JUDGMENT FOR UNPAID MAINTENANCE; DISPUTED ISSUE OF PRECISE AMOUNT DUE TO BE DETERMINED AT HEARING
Plaza 400 Owners Corp. v. Kurpis Supreme Court, New York County
NYC DEP ENTITLED TO SUMMARY JUDGMENT FOR UNPAID WATER/SEWER CHARGES FROM CONDO & UNIT OWNERS, BUT TIME AND INTEREST LIMITED
Department of Environmental Protection v. Board of Managers of The 772 East 8th Street Condominium Supreme Court, New York County
COMMENT—-Boards should always verify that management companies are paying water and sewer charges.
SHAREHOLDER CANNOT CANCEL CO-OP’S SALE LIEN NOTICES FOR NON-PAYMENT
Ger v. Saxony Towers Realty Corp. Appellate Division, 2nd Dept.
CO-OP BOARD’S DETERMINATION THAT SHAREHOLDERS WERE COMPLYING WITH NOISE HOUSE RULE PROTECTED BY BUSINESS JUDGMENT RULE
Rumor v. Lyan Supreme Court, Queens County
SHAREHOLDER CAN SUE CO-OP FOR INTERFERING WITH HIS ALTERATIONS, UNDER ALTERATIONS AGREEMENT
Irving Place Tenant Corp. v. Erem Supreme Court, New York County
SHAREHOLDER CANNOT ENJOIN IMPLEMENTATION OF CO-OP BYLAW AMENDMENT
Glodek v. Fine Arts Development Laboratories, Inc. Supreme Court, New York County
SHAREHOLDER CANNOT SUE CO-OP OR ITS FORMER COUNSEL FOR FAILING TO RECOGNIZE FORMER OWNERSHIP AS JOINT TENANCY
Young v. 101 Old Mamaroneck Road Owners Corp. Appellate Division, 2nd Dept.
GUARANTOR OF TRUST’S OBLIGATIONS TO CO-OP CANNOT AVOID GUARANTY OBLIGATIONS BASED ON DISPUTE INVOLVING TRUST
Churchill Owners Corp. v. Kent Supreme Court, New York County
CONDO BOARDS CAN SUE UMBRELLA HOA FOR BREACH OF FIDUCIARY DUTY
Board of Managers of Van Wyck Glen Condominium v. Van Wyck at Merritt Park Homeowners Association, Inc. Appellate Division, 2nd Dept.
CHURCH GRANTED LICENSE TO INSTALL PROTECTIONS ON NEIGHBORING CO-OP BUILDING PER RPAPL §881
Redeemer Presbyterian Church East Side v. 160 East 91 Owners Corp. Supreme Court, New York County
HOA HOUSE RULE LIMITING DOGS’ WEIGHT TO 25 POUNDS HELD NULL & VOID
Turan v. Meadowbrook Pointe Homeowners Association, Inc. Appellate Division, 2nd Dept.
MANAGING AGENT NOT LIABLE TO CONDO FOR SPONSOR CONSTRUCTION DEFECTS
The Board of Managers of 325 Fifth Avenue Condominium v. Continental Residential Holdings, LLC Supreme Court, New York County
COMMENT—-This litigation is now 11 years old.
UNIT OWNER CAN SUE CONDO FOR FAILING TO FOLLOW ITS OWN BUILDING SAFETY PROTOCOL, WHICH LED TO DOORMAN ASSAULTING HER
Sackas v. 240 East 46th Street Condominium Appellate Division, 1st Dept.
CONDO AWARDED SUMMARY JUDGMENT ON FORECLOSURE OF LIEN FOR UNPAID COMMON CHARGES
Board of Managers of The Carnegie Plaza Condominium v. Delcioppo Supreme Court, New York County
COMMENT—-BBG represented the victorious condo.
CONDO BUYER CANNOT SUE SELLER FOR FRAUD BASED ON BUILDING HAVING ONLY A VIRTUAL DOORMAN
Dille v. Zoelle LLC Supreme Court, New York County
COMMENT—-The virtual doorman was fully disclosed in the offering plan, which the buyer could have seen in conducting due diligence.
SHAREHOLDER CANNOT SUE CO-OP FOR FAILING TO SELL ROOF SPACE TO HER
Levinson v. 77 Perry Realty Corp. Appellate Division, 1st Dept.
COMMENT—-The Court held that the parties had never reached full agreement on all terms.
CO-OP’S “PULLMAN” EJECTMENT OF SHAREHOLDER UPHELD UNDER BUSINESS JUDGMENT RULE
Rivercross Tenants Corp. v. Kovach Appellate Division, 1st Dept.
CONDO LIEN FORECLOSURE SET ASIDE
Board of Managers of The 442 St. Marks Avenue Condominium v. Milord Appellate Division, 2nd Dept.
COMMENT—-Because the condo had failed to disclose a mortgage of record against the unit.
SHAREHOLDER LIABLE FOR CO-OP’S ATTORNEY FEES UNDER ALTERATIONS AGREEMENT
Mandracchia v. Renovate-Create Sourcing and Procurement Corp. Supreme Court, New York County
COMMENT—-The shareholder had sought to blame the co-op for an alteration gone awry. BBG represented the victorious co-op.
By: Aaron Shmulewitz heads the Firm’s co-op/condo practice, consisting of more than 300 co-op and condo Boards throughout the City, as well as sponsors of condominium conversions, and numerous purchasers and sellers of co-op and condo apartments, buildings, residences and other properties. If you would like to discuss any of the cases in this article or other related matter, you can reach Aaron at 212-867-4466 ext. 390, or ashmulewitz@bbgllp.com.