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Co-ops and Condominiums
Shareholder Not Entitled to Withhold Maintenance Payments for Habitability Breach
Andreas v. 186 Tenants Corp., 2022 WL 1309154, AppDiv, First Dept. (memorandum opinion)
In an action by co-op shareholders for breach of contract and breach of the warranty of habitability, shareholders appealed from Supreme Court's dismissal of the habitability claim, grant of partial summary judgment to the co-op on its breach of contract counterclaim, and award of attorney's fees to the corporation. The Appellate Division modified to defer determination of attorney's fees, but otherwise affirmed.
In response to leaks in their apartment, shareholders brought this action for breach of the implied warranty and breach of the lease and paid maintenance into escrow rather than to the co-op corporation. Supreme Court dismissed the breach of warranty claim and granted summary judgment to the corporation on its counterclaim for release of the withheld maintenance. Supreme Court also granted attorney's fees to the corporation.
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