Proprietary Lease Provision Was Unenforceable

LVT Number: #29827

Cooperative shareholder tenant sued landlord co-op for failing to transfer shares to her for another apartment in the building owned by her husband. In response, landlord counterclaimed for attorney's fees. The court ruled against landlord, who appealed and lost. An attorney's fee provision in tenant's proprietary lease was unconscionable and unenforceable as a penalty since it provided that tenant must pay attorney's fees if she commenced an action against landlord based on landlord's default.

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Krodel v. Amalgamated Dwellings Inc.: 166 A.D.3d 412, 2018 NY Slip Op 07531 (App. Div. 1 Dept.; 11/8/18; Richter, JP, Manzanet-Daniels, Kapnick, Kern, Moulton, JJ)