Co-op Denied Purchase Application Based on Finances, Not Racial Discrimination

Tenant shareholder sued landlord cooperative corporation for racial discrimination after landlord denied tenant’s 2010 application to buy an apartment next door to the three-bedroom unit he purchased in 1992. Landlord claimed that tenant failed to produce financial statements proving his ability to meet the financial obligations of the co-op. The court ruled against tenant and dismissed the case. Tenant’s financial statements showed debts of $20 million against assets of $8 million and cash of only $50,000. Tenant had been elected to the co-op board twice and was its president from 2007 to 2009. Tenant’s mother also was elected to the co-op board. In addition, landlord also had five times approved subsequent apartment purchases by tenant, as he moved to a larger apartment and purchased storage rooms at the building. The court found no discrimination.

Fletcher v. The Dakota: Index No. 101298/11, NYLJ No. 1202737441836 (Sup. Ct. NY; 9/11/15; Rakower, J)