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Co-ops and Condominiums

By New York Real Estate Law Reporter Staff
May 31, 2025

Co-Op Entitled to Withhold Consent to Sublet

Orlitsky v. 33 Greenwich Owners Corp.
2025 WL 676701
AppDiv, First Dept.
(memorandum opinion)

In co-op shareholder’s action against the co-op corporation, the parties cross-appealed from Supreme Court’s order denying the co-op’s motion to dismiss the causes of action for trespass, breach of the proprietary lease, breach of the implied covenant of good faith and fair dealing, and breach of fiduciary duty, but granting the co-op’s motion to dismiss the claims for breach of the implied warranty of habitability and tortious interference with contract. The Appellate Division modified to dismiss the causes of action for breach of the proprietary lease, breach of the implied covenant of good faith and fair dealing, and breach of the covenant of quiet enjoyment, and otherwise affirmed, holding that discovery was necessary to evaluate shareholder’s trespass and breach of fiduciary duty claims.

The co-op corporation sent a letter to shareholder informing him that he would no longer be permitted to sublet his apartment. The complaint also alleged that after a gas line repair, the cop-op’s agents entered shareholder’s apartment without permission or justification. These actions prompted shareholder’s action.

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