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Co-ops and Condominiums

By ssalkin
April 01, 2020
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Co-op Entitled to Attroneys' Fees

Hajovsky v. Berkeley Cooperative Towers Sec. III Corp. NYLJ 1/31/20, p. 33, col. 5 AppDiv, Second Dept. (memorandum opinion)

In co-op shareholder's action for declaratory, injunctive, and monetary relief, shareholder appealed from Supreme Court's dismissal of the complaint. The Appellate Division affirmed, holding that the co-op was entitled to attorneys' fees.

The co-op board enacted a resolution requiring all shareholders with a parking license agreement to submit evidence of a valid driver's license and current automobile registration. Shareholder then filed a complaint with the Division of Human Rights, contending that due to a disability, there are periods during which he is unable to drive, and that during those periods he should not be required to submit his vehicles registration. After the co-op answered, the Division dismiss the complaint for shareholder's failure to provide information about his disability and failure to demonstrate a nexus between the accommodation he was seeking and any medical need. The co-op then sought reimbursement for its attorneys' fees, and shareholder made the reimbursement. The Division of Human Rights then reopened the complaint, sua sponte, but again dismissed it, concluding that shareholder had provided sufficient evidence of his disability, but no nexus between the accommodation and any medical need. Shareholder then demanded reimbursement for the attorneys' fees he had paid to the co-op. The co-op rejected the demand and sought additional reimbursement for attorneys' fees incurred in the subsequent Division of Human Rights proceeding. Shareholder then brought this action contending that the co-op had no right to recover attorneys' fees and a declaration that the co-op could not terminate his parking license absent a monetary default under the parking license agreement. Supreme Court dismissed the action and shareholder appealed.

In affirming, the Appellate Division noted that shareholder's main contention on appeal was that the co-op had failed to demonstrate that shareholder was in default under the relevant agreements. The court held, however, that the issue was not properly before the court because shareholder had raised it for the first time on appeal. The court then held that shareholder's remaining contentions were without merit.

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