Cooperatives & Condominiums

In co-op corporation's action against sponsor for a determination that sponsor's purported surrender of shares representing unsold parking spaces is invalid, sponsor appealed from Supreme Court's award of summary judgment to the co-op corporation. The Appellate Division reversed and remanded, concluding that the controlling documents were ambiguous about the sponsor's right to surrender the parking space shares without also surrendering the shares of the associated apartment.

The sponsor's offering plan, effective in 1986, converted into cooperative ownership three buildings with 1844 apartments and 2492 parking spaces. The sponsor remained the holder of unsold shares associated with a number of apartments and parking spaces. In 2010, sponsor purported to surrender the shares representing unsold parking spaces. The co-op corporation then brought this action, seeking to declare the surrender void. Supreme Court awarded summary judgment to the co-op corporation. Supreme Court also denied the co-op's motion for summary judgment on its claim for maintenance payments associated with the parking spaces. The sponsor appealed, and the co-op corporation cross-appealed with respect to the maintenance payments.