Condo Board Properly Billed Unit Owner

Condominium unit owner sued condo board and managing agent, claiming that they discriminated against him by offering different repayment options for common charges than those offered to other unit owners. The board and managing agent claimed that, due to a construction error, the unit owner and three others weren’t charged for electrical use until 2009. They apportioned a pro rata share and offered each of the four unit owners a choice of one lump-sum payment or to double actual electrical charges for the coming year. Unit owner refused both options. The managing agent then told unit owner that the board would proceed with filing a lien against his unit. The court dismissed the case. The three other unit owners paid the charges by means of the second option offered to all concerned. So there was no discrimination. And the business judgment rule barred the court from examining the board’s actions. There was no proof that the board acted outside the scope of its authority or without a legitimate corporate purpose.

Fernandez v. Akam Associates: Index No. 110446/10, NYLJ No. 1202568622 (Sup. Ct. NY; 8/6/12; Kenney, J)