Condo Board's Lawsuit Wasn't Properly Authorized

August 18, 2014

LVT Number: #25710

Condominium board of managers sued condo conversion sponsor for compensation based on claimed defects in the building. The sponsor asked the court to dismiss the case without a trial, claiming that the board lacked standing to sue. The court ruled for the sponsor and dismissed the case. The board argued that no corporate resolution or duly noticed meeting of unit owners was required. But the building's bylaws required a meeting or vote by the condo board before commencing a lawsuit on behalf of the unit owners.

Condominium board of managers sued condo conversion sponsor for compensation based on claimed defects in the building. The sponsor asked the court to dismiss the case without a trial, claiming that the board lacked standing to sue. The court ruled for the sponsor and dismissed the case. The board argued that no corporate resolution or duly noticed meeting of unit owners was required. But the building's bylaws required a meeting or vote by the condo board before commencing a lawsuit on behalf of the unit owners. There was no documentation that this had taken place before the lawsuit was started.

Bd. of Managers, Clermont Greene Condo v. Vanderbilt Mansions: Index No. 504278/2013, NYLJ No. 1202662428465 (Sup. Ct. Kings; 7/2/14; Demarest, J)

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