BBWG June 2014 Newsletter June 2014 | Page 7

CO-OP SHAREHOLDER ENTITLED TO ALL SHAREHOLDERS’ NAMES AND ADDRESSES, TO REVIEW BOARD MEETING MINUTES, AND TO REVIEW CORPORATE BOOKS AND RECORDS In Re Goldstein v. Acropolis Gardens Realty Corp. Appellate Division, 2nd Department COMMENT | While a shareholder’s entitlement to names and addresses is nothing new, the order for access to Board minutes and books and records was expansive. CONDO BOARD CANNOT SUE SPONSOR’S ARCHITECT OR ENGINEER OVER CONSTRUCTION DEFECTS Board of Managers of The Sevenberry Condominium v. N7B LLC Supreme Court, Kings County COMMENT | The Court held that there was no privity of contract between the condo and these professionals, the condo was not a third-party beneficiary of the agreements between the sponsor and these professionals, and the condo’s claims were pre-empted by the Martin Act. The condo had previously reached a settlement with the sponsor. CONDO LIEN VALID DESPITE UNIT OWNER’S CHALLENGE TO MANNER OF VERIFICATION/NOTARIZATION Board of Managers of 34-44 82nd Street Condominium v. Roman Appellate Division, 2nd Department CONDO BOARD CAN SUE SPONSOR AND PRINCIPALS FOR BREACH OF CONTRACT AND FALSE ADVERTISING, OVER CONSTRUCTION DEFECTS Board of Managers of 550 Grand Street Condominium v. Schlegel LLC Supreme Court, Kings County COMMENT | Although these two claims survived dismissal, most claims against the sponsor and its principals were dismissed; all claims against the sponsor’s architect were dismissed. The Court held that the sponsor’s principals could be sued based on the certification they signed as part of the offering. As can be seen from other decisions reported above, this decision contrasts somewhat with the prevailing body of law on this subject. 7