CNYC
search
Council of New York Cooperatives & Condominiums
Article Archive
Sponsor Issues

Published: Summer 2002

APPEALS COURT ACKNOWLEDGES
SHAREHOLDER RIGHT
TO A "VIABLE COOPERATIVE"

A June 11, 2002 Court of Appeals decision in the matter of 511 West 232nd Owners Corp. v. Jennifer Realty Co. advances CNYC's campaign to have sponsors “complete the conversion” by selling units as they become available. The Court recognized a right of shareholders to live in “a viable cooperative.” Reversing a decision by a lower court, the Court of Appeals denied the sponsor's motion to dismiss the claim of the cooperative, holding that the cooperative had set forth a legally sufficient claim against the sponsor.
Twelve years after Jennifer Realty Co. converted 511 West 232 St. to cooperative status, the sponsor still held 62% of the shares and had been renting units as they became available, refusing offers to purchase. The resident shareholders brought suit against Jennifer Realty for this practice. When the court found for the cooperative, the sponsor appealed. This decision remands the case to the lower court, where the challenge will be to determine what is meant by a “viable cooperative.” This case is explained in more detail here.

 
NOTICES


Sign Up Today
CNYC EMAIL LIST
Receive CNYC updates and bulletins by email! To sign up, click here and complete the online form.

Now Online
Member Inquiries
Questions & Requests from CNYC Members, to CNYC Members. Click to view.

EVENTS
click to view event details

You may register for CNYC events by calling (212) 496-7400 or by completing the Onlne Registration Form.

CNYC Membership

Is Your Cooperative or Condominium a CNYC Member?

Join Today!

DOT-COOP Registration

Does your building have its "Dot-Coop"? Register by clicking on this button:

CNYC
250 West 57th Street, Suite 730
New York, NY 10107-0730
Tel: (212) 496-7400
Fax: (212) 580-7801
E-mail: info@cnyc.coop
 
   
 
Membership | About CNYC | Events | Housing Conference | Current Articles | Article Archive | Links | Home | back to top
Copyright © CNYC, 1996-. All Rights Reserved. Policy Statements. Designed & Maintained by Chrein.com LLC