A distinguished panel of New York co-op/condo attorneys analyze recent NY co-op/condo decisions. Subscribers receive a monthly PDF Digest of these case summaries and takeaways, an Advance Sheet of co-op/condo court cases recently decided, and access to the searchable Tracker database.
Take a Test Drive for $1Addressing the specific and unique needs of today’s niche community of New York's co-op and condo professionals, Case Law Tracker does the heavy lifting—combing through and drawing out the cases most relevant to your needs.
Case Summaries
Focusing only on co-op and condo cases, practicing attorneys in this field prepare case summaries and useful takeaways - helping you understand what the case is about so you can quickly determine if it benefits you.
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Advisory Panel
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Case Watch
Emailed twice-monthly, Case Watch focus on providing insight on one particularly relevant case—clearly explaining what happened, why it’s important, and what lessons can be learned within. Case Watch reaches two audiences: lawyers who subscribe to the Co-op & Condo Case Law Tracker and Habitat Magazine subscribers (co-op and condo board directors, property managers and other industry professionals).
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.
Takeaway Cooperative corporations no longer have, if they ever did, free rein to deny the purchase of a unit by otherwise qualified buyers who are members of a protected class. They must act responsibly to consider lawful bases for rejecting any applicant. That often includes timely interviews and consideration of relevant non-discriminatory factors concerning the applicant. It’s often in their best interest to have their counsel involved as well. In this case, there was no evidence of due consideration of the applicant’s qualifications except that she was a black and/or female. It’s possible that the fact that she was a nurse practitioner, not a physician, may have been a legitimate reason to deny her application. That reason vanished, however, when the board approved a sale to one it is board members with no medical qualifications. Boards are still not required to give any reason for rejection, and they typically will not do so. That may still change with the enactment of laws to require reasons be given.
Read full articleTAKEAWAY This case is an important reminder that boards should not assume their governing documents or insurance policies automatically protect owners from lawsuits brought by the building’s insurer. If a board wants to limit subrogation claims against unit owners or shareholders, the waiver language in both the governing documents and the insurance policies must be clear, direct, and consistent. Vague phrases such as “if obtainable” or “may waive” may not provide the protection boards and residents think they do. Boards should periodically review their bylaws, proprietary leases, alteration agreements, and insurance policies with experienced legal and insurance professionals to confirm that coverage and waiver provisions reflect the building’s intentions. For a unit owner to suddenly learn that they can be sued by the building’s insurance company when there is damage can be a rather startling, and expensive, surprise.
Read full articleTAKEAWAY This case is a useful reminder that shareholders' rights to inspect books and records are broad, and courts have consistently enforced them. The bar for a "valid purpose" is not high — organizing a special shareholder meeting and communicating with fellow shareholders about corporate matters clears it. Boards that refuse these requests, or try to work around them by offering to relay information on a shareholder's behalf, are unlikely to prevail in court. The one win for the co-op here was the denial of the engineering and construction records, because Levy couldn't connect those documents to his stated purpose of calling a special meeting. That illustrates an important principle: a shareholder's request must be tied to a purpose reasonably related to their interest as a shareholder, and courts will trim requests that overreach. Before fighting a books-and-records demand, boards should carefully assess whether the request is well-founded. Unless a request overreaches, fails to supply a valid purpose, or raises some comparable deficiency, courts have routinely granted them — making litigation an expensive and uncertain path for the board.
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