sgradmin, Author at SGR Law

Oct 5, 2006

Mold

The New York County Supreme Court issued a decision on September 27, 2006, finding that current scientific evidence does not support a conclusion that mold or damp indoor environments cause illness. The lengthy decision was issued after an extensive hearing. This is a very important decision for all landlords, including cooperative and condominium boards, and indicates a growing trend among courts across the country to view evidence of mold-caused illnesses with increasing skepticism. In Fraser v. 301-52 Township Corp., the plaintiffs (husband, wife, and child) sued their cooperative for personal injuries allegedly caused by mold in their water-damaged apartment. The… Read more

Aug 23, 2006

Interest on Unpaid Maintenance and Common Charges

Most cooperative proprietary leases and condominium by-laws permit the board to charge interest on unpaid maintenance or common charges and set forth a fixed percentage or amount for the interest. Some leases and by-laws, including the forms recommended by our firm to its clients, provide authority to the board to set and change the interest rate or late fees from time-to-time. However, where the by-laws or lease set a fixed interest rate or formula, it is important that the interest actually charged by the board and managing agent complies with the terms of the lease and by-laws. The amount of… Read more

Apr 28, 2006

Board Elections and Shareholder Status

As we enter the season when many cooperatives and condominiums hold their annual meetings, it is important to make certain that the election of board members is conducted properly. Sometimes this can be difficult, especially in buildings that have contradictory or ambiguous by-law provisions. These uncertainties lead to acrimony and, occasionally, to litigation. As an example of ambiguity, one provision may simply require that to become a board member the candidate must be a resident of the building (or sometimes just a resident of the state) and over 18 years of age, but not require that the candidate be a… Read more

Nov 7, 2005

Protecting Against Theft of Building Funds

In the wake of recent news reports about a cooperative’s board member and treasurer who allegedly embezzled over $4.7 million, a number of our clients have asked what they should be doing to prevent similar cases in their cooperatives or condominiums. It is impossible to prevent all thefts under all circumstances, and the methods of financial control and supervision may vary from building to building or managing agent to managing agent. In most cases, though, some basic steps may be followed without much difficulty: Boards should confer with the building’s accountant to confirm that conventional financial controls are in place… Read more

Oct 28, 2005

Liability of Condominium Managers and Unit Owners for Injuries to Third Parties

On October 25, 2005, New York’s intermediate appellate court issued a decision of concern to both condominium boards and individual unit owners. Although the decision, on its face, appears to limit the personal liability of unit owners for claims made against the condominium by third parties, it, in fact, poses new and troubling issues regarding the personal liability of condominium board members while not ultimately providing unit owners real protection. We described the case involved, Pekelnaya v. Allyn, in our March 24, 2004 memorandum. The lawsuit was commenced after a section of chain link fence fell from the rooftop of… Read more

Aug 9, 2005

Condominium Boards’ Right to Restrict Sales

A recent court decision has generated a considerable amount of confusion among some condominium boards and condominium unit owners regarding the power of condominiums to regulate the sale of units in a manner similar to cooperatives. We hope that this memorandum will help to clarify matters. The decision, Demchick v. 90 East End Avenue Condominium, 18 A.D.3d 383, 796 N.Y.S.2d 62 (1st Dep’t 2005), was issued on May 31, 2005 by the Appellate Division for the First Department (which covers Manhattan and the Bronx). The condominium at issue sought, through the amendment of its by-laws, to limit the sale of… Read more

Nov 1, 2004

Revisions to NYS Tax Law on Gain Realized Upon Sale of Co-ops by Nonresidents

New York State has made recent changes to personal income taxation of transfers of cooperative apartments of which you should be aware. The legislature amended the state tax law (§§ 631, 633) to include as taxable income the gain realized from the transfer of co-op apartment shares by an individual, trust, or estate that is not a resident of New York State. Such gain will also be treated as taxable income of the nonresident if the shares are held in a partnership. These changes are retroactive to January 1, 2004. In addition, to assist in the collection of tax on… Read more

Jul 14, 2003

Liability for Sidewalk Injuries

This memorandum was initially issued by the cooperative/condominium practice group of Balber Pickard Maldonado & Van Der Tuin, PC which joined Smith, Gambrell & Russell, LLP on February 1, 2017 and now practices as part of SGR’s cooperative/condominium practice group. The City of New York recently amended its Administrative Code to shift liability for injuries caused by unsafe sidewalks to the owner of the property adjoining the sidewalk. This will have liability implications for your cooperative or condominium. Prior to the amendment, the owner of the property adjoining the sidewalk was not liable for injuries caused by defects or disrepair… Read more

May 21, 2003

“Objectionable” Shareholders

This memorandum was initially issued by the cooperative/condominium practice group of Balber Pickard Maldonado & Van Der Tuin, PC which joined Smith, Gambrell & Russell, LLP on February 1, 2017 and now practices as part of SGR’s cooperative/condominium practice group. We are pleased to report that the New York Court of Appeals in 40 West 67th Street Corp. v. Pullman unanimously affirmed the decision our firm obtained last May from an intermediate appellate court. As you may recall, in that decision, a divided court upheld a cooperative’s right to terminate a shareholder’s proprietary lease on account of “objectionable” conduct. This… Read more

Jul 16, 2002

Sponsor Obligation to Sell Unsold Shares

This memorandum was initially issued by the cooperative/condominium practice group of Balber Pickard Maldonado & Van Der Tuin, PC which joined Smith, Gambrell & Russell, LLP on February 1, 2017 and now practices as part of SGR’s cooperative/condominium practice group. You may have seen articles in the press about a recent court decision concerning a cooperative sponsor’s obligation to sell unsold shares. We thought an explanation of the decision might be of use to you. The decision was issued by New York State’s highest court, the Court of Appeals, in a case named 511 West 232nd Owners Corp. v. Jennifer… Read more