Co-Ops—Cost-Shifting Provision in Standard Alteration Agreement Between Shareholder, Cooperative Corporation and Management Company Upheld
This case involved the “scope of a cost-shifting provision in a standard alteration agreement between the proprietary lessee of a co-op apartment and the cooperative corporation and its management company.” The court held that the cost-shifting provision was “proper, clear, unambiguous and enforceable as written” and the court rejected the plaintiff’s argument that the provision could be applied only where the co-op corporation is determined to be the “prevailing party and the fees it incurred in relation to its oversight of the proposed alterations are determined to be reasonable.” However, since the defendants, in a “so ordered” stipulation, had agreed to permit the plaintiff to recommence work upon his completion of certain conditions, the defendants were precluded requiring payment of those costs as a condition to permitting the work to be completed.
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