Cooperatives & Condominiums

Unit Owner's Claim Dismissed for Failure to Show Damages

Schwartz v. Hotel Carlyle Owners Corp.

NYLJ 10/21/15, p. 28, col. 4

AppDiv, First Dept.

(memorandum opinion)

In an action by co-op unit owner against the co-op corporation for trespass, conversion and breach of the covenant of quiet enjoyment, the co-op corporation appealed from Supreme Court's denial of its summary judgment motion. The Appellate Division reversed and granted the motion, holding that unit owner had made no showing that he had suffered any uncompensated damages.

Following a water leak in July 2011, the co-op corporation's agents entered unit owner's apartment for the purpose of assessing damage and making repairs. Unit owner immediately objected, and the agents left the apartment. Unit owner stopped paying monthly maintenance, and was credited with a rent abatement through April 2012. Unit owner also received compensation for his insurer for additional living expenses even though the apartment was not unit owner's primary residence. Unit owner then brought this action seeking damages, and Supreme Court denied the co-op corporation's summary judgment motion.

In reversing, the Appellate Division started by noting that the trespass claim could not stand because the proprietary lease expressly permits entry into an apartment for the purpose of assessing damages and making repairs. The court then held that the conversion claim should have been dismissed because unit owner had offered no evidence that the building's agents, rather than his own agents, were responsible for any loss in personal property. Finally, the court dismissed the quiet enjoyment claim for two reasons. First, the unit owner had failed to show, in light of the insurance payments received, that he had suffered any uncompensated damage, or that any delays after April 2012 were due to unreasonable conduct by the co-op corporation. Second, the court held that unit owner's failure to pay rent constituted an election of remedies and precluded him from prevailing on a damage claim.

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Unit Owner's Claim Dismissed for Failure to Show Damages

Schwartz v. Hotel Carlyle Owners Corp.

NYLJ 10/21/15, p. 28, col. 4

AppDiv, First Dept.

(memorandum opinion)

In an action by co-op unit owner against the co-op corporation for trespass, conversion and breach of the covenant of quiet enjoyment, the co-op corporation appealed from Supreme Court's denial of its summary judgment motion. The Appellate Division reversed and granted the motion, holding that unit owner had made no showing that he had suffered any uncompensated damages.

Following a water leak in July 2011, the co-op corporation's agents entered unit owner's apartment for the purpose of assessing damage and making repairs. Unit owner immediately objected, and the agents left the apartment. Unit owner stopped paying monthly maintenance, and was credited with a rent abatement through April 2012. Unit owner also received compensation for his insurer for additional living expenses even though the apartment was not unit owner's primary residence. Unit owner then brought this action seeking damages, and Supreme Court denied the co-op corporation's summary judgment motion.

In reversing, the Appellate Division started by noting that the trespass claim could not stand because the proprietary lease expressly permits entry into an apartment for the purpose of assessing damages and making repairs. The court then held that the conversion claim should have been dismissed because unit owner had offered no evidence that the building's agents, rather than his own agents, were responsible for any loss in personal property. Finally, the court dismissed the quiet enjoyment claim for two reasons. First, the unit owner had failed to show, in light of the insurance payments received, that he had suffered any uncompensated damage, or that any delays after April 2012 were due to unreasonable conduct by the co-op corporation. Second, the court held that unit owner's failure to pay rent constituted an election of remedies and precluded him from prevailing on a damage claim.

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