The recent case of Alford v. 72nd Tenants Corp. offers a stark reminder for property managers in the cooperative housing sector: Disputes over terraces and other potentially shared spaces can lead to costly lawsuits. Even when your client board operates in good faith, detailed records play a vital role in successfully defending their actions.
Case Background: “Terrace” or Tenant Trouble?
A tenant-shareholder claimed that a rooftop area adjacent to her apartment qualified as a “terrace” under her proprietary lease. When the cooperative performed extensive repairs to the roof, the tenant alleged a breach of contract, and a kitchen sink of claims, due to delays and inconveniences.
The court, however, ruled in favor of the cooperative. The key factor was counsel’s ability to demonstrate through good record keeping that the board’s obligation was to protect the building’s structural integrity which outweighed the tenant’s claimed right to uninterrupted enjoyment of their own space, and that the board satisfied its obligation.
Why Your Records are Your Boards’ Legal Shield
This case highlights the importance of meticulous records for property managers. In Alford, the cooperative’s defense crucially relied on evidence documenting:
- Initial Condition of the Space: Detailed descriptions, photos, and engineering assessments of the pre-existing damage supported the necessity of repairs.
- Decision-Making Process: Board meeting minutes, resolutions, and correspondence with architects and engineers demonstrated reasoned and deliberate decision-making.
- External Delays: Evidence of permitting delays, contractor changes, and unforeseen circumstances justified the repair timeline.
Lessons for Property Management Companies
This case illustrates crucial lessons for managing cooperative properties:
- Lease Language Matters: Analyze in advance what proprietary leases and offering plans define as leased spaces, balconies, terraces, or other areas of potential confusion, to allow attorneys to raise the right defenses like standing in the lawsuit from the inception.
- Documentation is Essential: Maintain thorough records of board decisions, maintenance actions, resident communication, and any unforeseen project delays.
- You are Critical to Lawyers Building a Defense: Your efforts are the building blocks for attorneys defending your coop boards. Proactive legal guidance along the way will help minimizing dispute risks.
While strong proprietary lease language is the first line of defense, meticulous record-keeping is your best insurance against costly lawsuits. By prioritizing documentation, property managers can empower their cooperative clients to confidently defend their actions and protect the best interests of the community as a whole. The decision in Alford v. 72nd Tenants Corp. shows the myriad of claims that plaintiff lodged and the coop was able to get thrown out by stellar management of a difficult situation.
