Summary Judgement Secured. Attorneys' Fees Awarded. Cooperative Protected.
Schneider Buchel LLP represented a Manhattan cooperative corporation in connection with claims brought by shareholders alleging breach of lease and breach of the warranty of habitability arising from alleged water damage within the building affecting the shareholder’s apartment. The Plaintiffs, owners of a luxury duplex with outdoor space that included a glass atrium, claimed that the cooperative was responsible for water leaking from the atrium into their apartment.
The dispute arose after the Plaintiffs failed to provide access for necessary repairs while simultaneously withholding maintenance payments, claiming they were not obligated to pay because of the alleged conditions. As a result, the cooperative commenced a foreclosure action based on the arrears. In response, the shareholders’ initiated litigation alleging leaks in an effort to halt the foreclosure. Our firm opposed the effort to stop the foreclosure action and the Court agreed with our firm. As a result, the foreclosure sale was permitted to proceed. The pressure of the foreclosure action resulted in the Plaintiff shareholders paying all the outstanding arrears and legal fees shortly before the scheduled auction of their apartment. They did, however, choose to continue pursuing their claims against the cooperative.
After extensive opposition from the Plaintiffs, one of whom was an attorney himself, Schneider Buchel obtained summary judgment in favor of the cooperative, dismissing the complaint in its entirety. The firm successfully demonstrated that any water intrusion resulted solely from the Plaintiffs’ own failure to properly maintain their atrium.
Following dismissal of the action, Schneider Buchel moved to recover attorneys’ fees and costs incurred over more than four years of litigation. The firm submitted a detailed affirmation supported by comprehensive billing records documenting the work performed throughout the case.
Upon review, the Court found the requested fees to be reasonable and appropriate. The Court granted the application in full and directed the entry of judgment in favor of the cooperative and required the Plaintiffs to pay all the Co-op’s attorney’s fees, together with statutory interest which amounted to more than $100,000
As a result, the cooperative not only recovered the outstanding arrears, but also secured full dismissal of the claims and reimbursement of all legal fees incurred, ensuring that the financial burden of prolonged litigation did not fall on the cooperative or its shareholders.
By identifying critical legal deficiencies in the Plaintiffs’ claims, successfully defending the action through summary judgment, and enforcing the cooperative’s contractual right to recover attorneys’ fees, Schneider Buchel LLP achieved a complete and meaningful recovery for its client.
Mitchell J. Flachner and Suzanne Player of Schneider Buchel LLP represented the cooperative in this matter.
