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Berglund v. 411 East 57th Corp.

118 A.D.2d 431 Court N.Y. App. Div. Decision date 1986-03-11 English

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p. 431
Albert I. Berglund, Respondent, v 411 East 57th Corporation, Appellant.

— Order, Appellate Term, First Department ( 127 Misc 2d 58 ), entered February 1, 1985 which reversed the judgment of the Small Claims Part of the Civil Court, New York County (David Saxe, J.) ( 122 Misc 2d 702 ), entered January 26, 1984, dismissing the complaint, and which granted judgment to plaintiff in the sum of $1,500, unanimously affirmed, without costs and without disbursements.

The board of directors of defendant cooperative corporation acted without authority when it imposed a transfer tax in the amount of 1% of the sales price upon the transfer of the shares allocated to plaintiff’s apartment to a third party.

The transfer tax was not specifically authorized in the proprietary lease or in the cooperative’s bylaws. Nor was it approved as a modification or alteration of the lease or bylaws by a required affirmative vote of the shareholders (330 W. End Apt. Corp. v Kelly, 66 NY2d 556 ). Concur — Kupferman, J. P., Ross, Asch, Fein and Kassal, JJ.

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