Co-op Shareholder's Unlimited Right to Sublet Void

March 1, 2011

LVT Number: #23205

Tenant co-op shareholder sued landlord cooperative corporation. When the building converted to co-op ownership, the sponsor asked tenant to buy two apartments. She agreed to do so on the condition that she could freely sublet both apartments. In 2002, the co-op board put restrictions on subletting, and later rejected tenant's sublet request. Tenant claimed that this violated the right to freely sublet she'd had for 30 years. The co-op corporation asked the court to dismiss the case.

Tenant co-op shareholder sued landlord cooperative corporation. When the building converted to co-op ownership, the sponsor asked tenant to buy two apartments. She agreed to do so on the condition that she could freely sublet both apartments. In 2002, the co-op board put restrictions on subletting, and later rejected tenant's sublet request. Tenant claimed that this violated the right to freely sublet she'd had for 30 years. The co-op corporation asked the court to dismiss the case. Business Corporation Law Section 501(c) required landlord to apply subletting restrictions equally to all tenant shareholders. Tenant's agreement granting her preferential subletting rights was illegal and void as against public policy. The court ruled for landlord and dismissed the case without a trial.

Bregman v. 111 Tenants Corp.: Index No. 601637/06, NYLJ No. 1202480813246 (Sup. Ct. NY; 1/24/11; Madden, J)

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