Co-op Board Can Limit Shareholder's Subletting

June 10, 2012

LVT Number: #24142

Cooperative shareholder subleased two apartments since 1972. In 2003, the co-op board passed a resolution barring subletting without board approval for more than two years within any four-year period. The shareholder sued the co-op board. The court ruled against the shareholder and dismissed the case. The shareholder appealed and lost. The shareholder claimed that even though the language of the resolution applied the restriction to all shareholders, she was the sole target of the rule.

Cooperative shareholder subleased two apartments since 1972. In 2003, the co-op board passed a resolution barring subletting without board approval for more than two years within any four-year period. The shareholder sued the co-op board. The court ruled against the shareholder and dismissed the case. The shareholder appealed and lost. The shareholder claimed that even though the language of the resolution applied the restriction to all shareholders, she was the sole target of the rule. But there was nothing in the proprietary lease or other documents giving shareholder an unlimited right to sublet. And while the board may not deliberately single out any individual for harmful treatment, it can address a situation or conduct of a particular shareholder through policies if it protects the broader interests of the building.

Bregman v. 111 Tenants Corp.: Index No. 6707, NYLJ No. 1202552830266 (App. Div. 1 Dept.; 5/3/12; Saxe, PJ)

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