Co-ops and Condominiums

In co-op shareholder's action for a judgment declaring that the co-op corporation was out of compliance with article 7-C and section 302(1) of the Multiple Dwelling Law, and for an injunction preventing foreclosure of their shares and termination of their lease, shareholders appealed from Supreme Court's denial of their preliminary injunction motion. The Appellate Division affirmed, holding that shareholders had failed to establish a likelihood of success on the merits.

Shareholders refused to pay assessments imposed by the co-op board. They then brought this declaratory judgment action to establish that the co-op could not recover the money owed in assessments. They also sought an injunction preventing foreclosure of their co-op shares and termination of the proprietary lease. They also asserted that section 302(1) of the Multiple Dwelling Law precluded the co-op corporation from collecting rent or seeking possession for nonpayment because the premises did not have a valid certificate of occupancy. Supreme Court denied their motion for a preliminary injunction and shareholders appealed.