199 E. 7th St. v. ABC Realty

NEW YORK COUNTY
Landlord/Tenant Law

New York Law Journal

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Justice Joan Madden

Defendants moved for summary judgment dismissing the complaint and summary judgment on their counterclaims. Plaintiff was the proprietary lessee, and owned shares to five residential units in the subject building. East 7th Street Development was the fee owner of the building and proprietary lessor of the apartments. The court noted the gravamen of the action was that maintenance fees imposed on shareholders may have been larger than justified, that managing agent ABC Realty did not maintain separate bank accounts, and may not have credited to East 7th all the sums due to it. Plaintiff asserted four claims, including an order directing defendants to permit it to examine the books and records. The court dismissed that claim as moot as plaintiff was granted access. Defendants counterclaimed alleging breach of five leases based on failure to pay maintenance fees. The court found evidence submitted by defendants was sufficient to make a prima facie showing demonstrating plaintiff owed unpaid maintenance charges. Further, despite plaintiff being granted access to the building's books, it failed to submit evidence suggesting it did not owe the fee amounts allegedly due, entitling defendants to summary judgment.

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