Real Estate Law

NYC Co-op Must Pay Tenant $100K

In Dole v. 106-108 West 87th Street Owners Inc., the New York County Civil Court issued an unequivocal warning to parties in a landlord-tenant case: Do what you promised, in the way that you promised, or you'll risk getting hit with significant fees and costs.

In a decision dated November 22, 2006, the New York County Civil Court found that a cooperative corporation and its managing agent were in "civil contempt" for not following the procedures outlined in the parties’ settlement agreement which had been “so ordered” by the court.

The stipulation called for the cooperative and its agent to ensure that all work to the tenant’s unit would be performed in compliance with the New York City Department of Health’s “Guidelines on Assessment and Remediation of Fungi in Indoor Environments” (the “Guidelines”) and that all areas would be HEPA vacuumed once the work was completed.

Although the landlord and its agent took some efforts to address the condition, they failed to adhere to the agreed-upon procedures. Finding this noncompliance to be a substantial violation, the court held the landlord and its agent in civil contempt, directed the problem’s correction within thirty days, and, authorized the tenant to pursue the recovery of her legal fees.

At a hearing conducted last month, the tenant established that she had incurred substantial legal fees as a result of the cooperative’s misconduct. And, since the time expended and the fees charged by the tenant’s attorneys were reasonable in view of the litigation's complexity, by Order dated March 6, 2007, the Civil Court awarded the tenant a recovery in the amount of $100,002.03.

For a copy of the Civil Court’s decision and order finding the cooperative in contempt, please use this link: Contempt
 
For a copy of the decision awarding Ms. Dole her legal fees, please use this link: Legal Fees

For a copy of the NYC DOH’S Guidelines, please use this link: Guidelines

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A note of congratulations to Melissa Ephron-Mandel and Suzanne R. Albin (both counsel to Finkelstein Newman Ferrara LLP) for securing this victory on Ms Dole's behalf.