Co-ops and Condominiums

In an action by condominium unit owner for a declaration that the board had accepted its alteration agreement, the condominium appealed from Supreme Court's orders granting summary judgment to unit owner and holding the condominium in civil contempt. The Appellate Division modified to deny the motion for contempt and otherwise affirmed, holding that the condominium's delay constituted acceptance of the alteration agreement.

The subject unit is operated as a health club. Current unit owner's predecessor had submitted an alteration agreement and paid the required fee. Current unit owner returned a signed alteration agreement to the condominium's managing agent and requested that the prior owner's fee be applied to the application. The condominium declaration provided that an alteration agreement would be deemed approved if the condominium failed to object within 30 days. In this case, because the board failed to act on the application for many months, Supreme Court held that the application was deemed approved. The court also held that the condominium had violated its bylaws and a settlement agreement with the unit's prior owner by unreasonably withholding and delaying its waiver of the right of first refusal with respect to unit owner's lease with its prospective tenant. Supreme Court also held the condominium in civil contempt for failure to consent to ministerial Department of Building filings, including a PW-1 form.