Shareholder-Tenant Can Hold Monthly Fees in Escrow Pending Result of Case

A cooperative shareholder-tenant sued landlord co-op corporation due to claimed leaks, mold, and lack of heat in her unit. The court granted tenant an initial preliminary injunction, based on her likelihood of success on the merits. Landlord then counterclaimed that tenant had defaulted on maintenance payments and other fees, and tenant asked the court for a temporary stay of any requirement to pay. The court ruled for tenant because tenant showed there was a commercial lease, she had received a default notice and threat of lease termination, she had requested injunctive relief prior to termination of the lease, and that she was prepared to pay the outstanding maintenance if required. Tenant agreed to set the amount of maintenance due from June to December 2024 aside in escrow and to continue putting monthly fees in escrow pending resolution of the case. 

Barsky v. Sherman Sq. Realty Corp.: Index No. 651293/3034, 2025 NY Slip Op 30139(U), NYLJ No. 1737498982 (Sup. Ct. NY; 1/13/25; Frank, J)