Holder of Unsold Shares Needs Board Approval to Sublet

The owner of some cooperative apartments, who held unsold shares, sued landlord cooperative corporation. The owner asked the court to declare that it had a right to sublet the apartments without any conditions. The court ordered the co-op owner to pay maintenance and sublet fees while the case was pending, while requiring the owner to get consent for the sublets from landlord’s board of directors. The owner appealed and lost. The court properly refused to direct the owner to make payments to landlord without requiring the owner to get consent to sublet from landlord’s board of directors.

515 Avenue I Corp. v. 515 Avenue I Tenants Corp.: NYLJ, 4/28/08, p. 36, col. 3 (App. Div. 2 Dept.; Prudenti, PJ, Fisher, Miller, Balkin, JJ)