Co-ops and Condominiums

In co-op shareholder's action for declaratory and injunctive relief, shareholder appealed from Supreme Court's denial of a preliminary injunction against an auction sale of shareholder's shares. The Appellate Division affirmed, holding that shareholder's failure to seek relief during the cure period barred the preliminary injunction.

In 2016, the steam pipes under, around, and above shareholder's apartment began to emit steam, causing damage to the apartment. The following year, shareholder and the co-op agreed that shareholder would temporarily vacate the apartment and that the co-op would make repairs and would make payments to the shareholder during the repairs. The co-op contends that the repairs were completed in May 2018, but shareholder contends that the repairs were still ongoing in July 2018 when water from the apartment above his came pouring through the ceiling, destroying the recently-installed wood floor. In January 2019, the co-op served a notice to cure on shareholder, contending that he was in default of the proprietary lease by failing to make monthly maintenance payments. Shareholder did not cure within the cure period and, on January 30, 2019, the co-op served a notice of termination on shareholder. The co-op subsequently issued a notice of sale indicating that shareholder's unit would be auctioned off on April 3, 2019. On March 29, 2019, shareholder brought this action alleging breach of the warranty of habitability and the proprietary lease, and seeking declaratory and injunctive relief. Supreme Court denied shareholder's motion for a preliminary injunction.