Cooperatives & Condominiums

Occupant, Not Named Tenant, Entitled to Purchase at Insider Price

Steier v. Schreiber

NYLJ 2/2/06, p. 26, col. 4

AppDiv, First Dept

(memorandum opinion)

In an action by occupant of a rent-stabilized apartment for a declaration that she was a tenant in occupancy and for an order directing condominium sponsor to sell her the apartment pursuant to the condominium offering plan, tenant appealed from Supreme Court's order denying occupant's summary judgment motion and dismissing occupant's claim of a conspiracy between sponsor and named tenant. The Appellate Division modified to grant summary judgment declaring occupant a tenant in occupancy and directing sponsor to accept her tender of payment for the apartment.

When, in 1998, rent-controlled tenant began looking for a roommate to share expenses of the two-bedroom apartment, occupant, who was 40 years younger than tenant, moved into the apartment. The following year, tenant moved into a nursing home and stopped paying rent and utility bills. Landlord then brought a holdover proceeding against tenant and occupant, alleging that the tenant of record maintained her primary residence in the nursing home. The parties entered into a stipulation that occupant would continue to pay use and occupancy for the apartment during the course of the proceeding. The proceeding was marked 'off the calendar' in 2000, and has remained dormant ever since. Occupant continues to pay use and occupancy, and to reside in the apartment. In 2002, a condominium conversion plan was declared effective. Sponsor did not, however, send the offering plan and contract to purchase to occupant. Occupant nevertheless submitted an executed purchase agreement, together with the applicable down payment. Sponsor rejected the agreement. In the meantime, sponsor sent the conversion plan and documentation to named tenant at her daughter's address. Named tenant then served occupant with a notice terminating her tenancy and occupancy. Occupant then brought this action for a declaration that she was a tenant in occupancy, and for an order directing sponsor to accept her tender of payment. She also alleged a conspiracy between sponsor and named tenant, and sought damages. Supreme Court held that questions of fact precluded summary judgment, but dismissed the conspiracy claim.

In modifying, the Appellate Division noted that the right to purchase a rent-controlled apartment at the insider's price is limited to the 'tenant in occupancy' at the time the condominium conversion plan is accepted for filing. Here, where the named tenant had vacated the apartment almost three years before the conversion plan was declared effective, and there was no indication that named tenant would ever return, the court concluded that occupant, and not named tenant, enjoyed status as a 'tenant in occupancy' entitled to purchase the apartment. The court also held, however, that Supreme Court had properly dismissed the conspiracy claim because New York does not recognize civil conspiracy to commit a tort as a separate cause of action.

Occupant, Not Named Tenant, Entitled to Purchase at Insider Price

Steier v. Schreiber

NYLJ 2/2/06, p. 26, col. 4

AppDiv, First Dept

(memorandum opinion)

In an action by occupant of a rent-stabilized apartment for a declaration that she was a tenant in occupancy and for an order directing condominium sponsor to sell her the apartment pursuant to the condominium offering plan, tenant appealed from Supreme Court's order denying occupant's summary judgment motion and dismissing occupant's claim of a conspiracy between sponsor and named tenant. The Appellate Division modified to grant summary judgment declaring occupant a tenant in occupancy and directing sponsor to accept her tender of payment for the apartment.

When, in 1998, rent-controlled tenant began looking for a roommate to share expenses of the two-bedroom apartment, occupant, who was 40 years younger than tenant, moved into the apartment. The following year, tenant moved into a nursing home and stopped paying rent and utility bills. Landlord then brought a holdover proceeding against tenant and occupant, alleging that the tenant of record maintained her primary residence in the nursing home. The parties entered into a stipulation that occupant would continue to pay use and occupancy for the apartment during the course of the proceeding. The proceeding was marked 'off the calendar' in 2000, and has remained dormant ever since. Occupant continues to pay use and occupancy, and to reside in the apartment. In 2002, a condominium conversion plan was declared effective. Sponsor did not, however, send the offering plan and contract to purchase to occupant. Occupant nevertheless submitted an executed purchase agreement, together with the applicable down payment. Sponsor rejected the agreement. In the meantime, sponsor sent the conversion plan and documentation to named tenant at her daughter's address. Named tenant then served occupant with a notice terminating her tenancy and occupancy. Occupant then brought this action for a declaration that she was a tenant in occupancy, and for an order directing sponsor to accept her tender of payment. She also alleged a conspiracy between sponsor and named tenant, and sought damages. Supreme Court held that questions of fact precluded summary judgment, but dismissed the conspiracy claim.

In modifying, the Appellate Division noted that the right to purchase a rent-controlled apartment at the insider's price is limited to the 'tenant in occupancy' at the time the condominium conversion plan is accepted for filing. Here, where the named tenant had vacated the apartment almost three years before the conversion plan was declared effective, and there was no indication that named tenant would ever return, the court concluded that occupant, and not named tenant, enjoyed status as a 'tenant in occupancy' entitled to purchase the apartment. The court also held, however, that Supreme Court had properly dismissed the conspiracy claim because New York does not recognize civil conspiracy to commit a tort as a separate cause of action.