Co-op Unit Owners Bound by Alteration Agreement with Landlord

Co-op shareholder-tenants sued landlord, claiming breach of contract and fiduciary duty, unlawful ejectment, and malicious interference with tenants’ apartment alterations. The court dismissed the case without a trial. Tenants appealed and lost. Tenants had signed an alteration agreement with landlord when they moved in. This governed any renovation work they did. After tenants obtained the approval of plans to combine two adjoining apartments, landlord co-op corporation objected to work that went beyond what was approved. Among other things, landlord said that the proposed use of wood in structural elements and walls created a fire hazard. Landlord also imposed additional requirements regarding tenants’ proposed internal elevator renovation, to minimize noise and vibrations that would affect other tenants. At one point, when tenants failed to comply with a stop-work order, landlord padlocked the access points to the apartments so that tenants’ contractor couldn’t continue the unauthorized work. Tenants were out of the country at the time. Later, when tenants complied with landlord’s requirements, the stop-work order was lifted and the renovations were completed. There was no merit to tenants’ claims.

Bryant v. One Beekman Place, Inc.: NYLJ, 5/27/10, p. 32, col. 2 (App. Div. 1 Dept.; Andrias, JP, Saxe, McGuire, Moskowitz, Freedman, JJ)