Co-op Can Evict Shareholder Tenant for Objectionable Conduct Based on Short-Term Rentals

(Decision submitted by William J. Neville of the Manhattan law firm of Mitofsky Shapiro Neville & Hazen LLP, attorneys for the landlord.)

Landlord cooperative corporation sued to evict shareholder tenant for renting a portion of his apartment to a series of short-term guests during 2014 and part of 2015. Tenant acknowledged that he had at least 21 guests in his apartment during that time period. Landlord’s attorney had warned tenant in writing in August 2014 that he must stop doing this. Landlord also sent tenant a notice to cure in January 2015. Landlord then sent tenant a proprietary lease termination notice in February 2015 after obtaining approval of two thirds of the co-op board members. Landlord claimed unauthorized subletting and objectionable conduct by tenant. Tenant claimed that he ceased short-term rentals in early January 2015. But termination on the basis of objectionable conduct precludes a cure, even when the conduct may be curable. Tenant’s short-term rentals went beyond subletting and commercialized the building. The business judgment rule also required the court to defer to the co-op board’s good-faith decision making.  The court ruled for landlord and awarded a judgment of possession.

436-438 West 47th Apartment Owners Inc. v. Dawes: Index No. 61941/2015 (Civ. Ct. NY; 4/18/16; Stoller, J) [12-pg. doc.]