Was Alteration Agreement Requiring Fire Door Inside Unit Based on Mutual Mistake?

Landlord cooperative corporation sued to evict co-op shareholder tenants for breach of their proprietary lease by failing to complete alterations to their apartment in accordance with the terms of an alteration agreement signed with landlord. The alteration agreement required tenants to install a fire-rated door in the masonry fire wall that separated the bedroom of tenants' daughter from the rest of the apartment. Tenants argued that they and landlord made a mutual mistake because a fire-rated door wasn't legally required inside the apartment. If installed, it would require a second means of egress from the bedroom. Landlord asked the court to grant it possession and dismiss tenants' claims without a trial.

The court ruled against landlord based on a sworn statement by tenants' architect and a DOB Construction Code Determination Form, which supported tenants' claim. Tenants' defenses of mutual mistake and breach of lease required a trial, since they raised questions as to whether the parties operated under the mistaken belief that a self-closing, fire-rated door was legally required at the time they signed the alteration agreement.

350 Cabrini Owners Corp. v. Merkel: Index No. 570147/20, 2020 NY Slip Op 51396(U)(App. T. 1 Dept.; 11/20/20; Cooper, JP, Higgitt, McShan, JJ)