Co-op Apartment Subtenants Not Responsible for Water Leak Damage

An insurance company for Verizon sued a co-op apartment shareholder and his subtenants where damage to Verizon's property resulted from a flood caused by a water leak in the kitchen sink of the apartment that the subtenants occupied. The insurer claimed that the apartment owner and subtenants were negligent. The subtenants asked the court to dismiss the case against them without trial. The court ruled against the subtenants, and they appealed.

The appeals court reversed.The subtenants didn't have exclusive control over the plumbing underneath the apartment's kitchen sink which caused the leak. Instead, the sublease by which the co-op shareholder leased the apartment prohibited the subtenants from making any alterations to the apartment. Meanwhile, the proprietary lease by which the co-op shareholder leased the apartment gave him the responsibility to maintain the plumbing. This was consistent with subtenant's testimony that, if there were any maintenance issues, they would raise them with the co-op shareholder.

Tower Natl. Ins. Co. v. Lugo: Index No. 160305/18, App. No. 2650, Case No. 2023-04325, 217 NYS3d 541, 2024 NY Slip Op 04753 (App. Div. 1 Dept; 10/1/24; Moulton, JP, Mendez, Higgitt, O'Neil-Levy, Michael, JJ)