Category Archives: Real Estate

Insurance Coverage Disclaimed For Smithtown Property Damaged By Fire

Court Adjudicates Claims Against Insurance Company and Broker

James I. Ewart contacted  Larry Darcey, who was an independent agent for the Allstate Insurance Company. for the purpose of purchasing a landlord insurance policy to cover a property in Smithtown. Darcey subsequently provided quotes for landlord insurance to Ewart and then left for vacation without binding coverage in place.  Ewart did not select a policy and made no payment. Although Ewart knew that further actions were required to secure coverage, he believed that Darcey would complete them after he returned from vacation. But before Darcey returned, a fire damaged the property. Ewart tendered a claim to Allstate, which disclaimed coverage on the basis that no policy was in force on the date of the loss.

Ewart sued Allstate and Darcey to recover damages for breach of contract and negligence in failing to procure a landlord insurance policy for the property. Allstate and Darcey moved for summary judgment dismissing the complaint. Supreme Court granted the motion. Ewart appealed.

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Property Owner Fences Around Shed on Neighbor’s Land

Had Title to Enclosed Realty Been Acquired by Adverse Possession?.

Hongwei Guan and EZC Carolina LLC owned their two residences on adjoining parcels in the City of Ithaca, Tompkins County. In 2006, Guan became the titled owners of the western parcel and began using a shed that was fully located to the east of their boundary line. In 2021, EZC  became the titled owner of the eastern parcel and subsequently constructed a fence along the boundary line — resultantly enclosing the shed within EZC’s parcel.

Guan commenced an action seeking, among other things, to permanently enjoin EZC from maintaining the fence that prevented access to the shed, claiming to be the fee owner of the disputed area through adverse possession. After issue was joined and before the completion of discovery, Guan moved for partial summary judgment on the cause of action for a permanent injunction, which was opposed by EZC.  Supreme Court denied the motion in its entirety. Guan appealed.

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Property Owner Sued to Recover $450 Cost of Snowplowing Shared Private Driveway

Appeals Followed Small Claims Judgment In Favor of Neighbors

Silvio Bet commenced a small claims action seeking $112.50 each from Wayne Geriak Elizabeth Manning as their pro rata shares of a $450 plowing expense for a shared private roadway. After a trial, the Justice Court of the Town of Lake Pleasant found in favor of  Geriak and Manning because there was no prior agreement between the parties to share plowing costs for the driveway. Bet appealed. County Court affirmed.  Bet appealed to the Appellate Division..

Appellate review of small claims matters is limited to determining whether ‘substantial justice has been done between the parties according to the rules and principles of substantive law. Only a clearly erroneous determination will be overturned.

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In 2020 Residential Coop Unit Owners Challenge 2013/17 Sublet Rule Changes

Were Breach of Contract & BCL Claims Barred by Statute of Limitations?

Alison Fricke and others  were shareholders in Beauchamp Gardens Owners Corp., a cooperative corporation, and the owners of separate apartments in the cooperative complex. On February 17, 2020, they commenced an action alleging that BGOC  breached its contract with them and violated Business Corporation Law § 720 by enacting certain sublet policies which limited the number of years shareholders could sublet their apartments and imposed an annual sublet fee. The challenged policies became effective on January 1, 2013, and January 1, 2017.

BGOC subsequently moved to dismiss the causes of action alleging breach of contract and violation of Business Corporation Law § 720 as time-barred. Supreme Court granted those branches of the motion. Fricke and the others appealed

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Townhouse Sues Neighbor/Tenant After Shared Sewage Line Backup

Courts Addresses Claims For Compensatory and Punitive Damages

SJWA LLC asserted claims for trespass and private nuisance based on repeated backups of sewage in the basement of their townhouse. The property next to the townhouse is owned by Father RealtCorp., which leased the top two floors of its property to Chelsea 7 Corporation. According to the complaint, the backups  resulted from  Realty and Chelsa’s misuse of a shared sewage line running from their property under SJWA’s property and then to the main line in the street. Motion practice and an appeal ensued.

SJWA made a prima facie showing of trespass by submitting evidence that there was an intentional and unauthorized entry upon their property and that they did not take the premises subject to any license. In opposition to SJWA’s trespass claim,  Realty and Chelsa contended that they had a license to use the pipe based on an agreement entered into in 2006 between Realty and the prior owner of SJWA’s property after the pipe serving both properties was severed during construction on an abutting property. According to Realty, the prior owners agreed to share the cost of re-laying a combined sewage pipe, which was inspected and approved by New York City agencies, and Realty continued to use the pipe without incident until the backups that occurred.

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Contentious Dispute Between Contiguous 47th St. Property Owners

Court Decides Rights To 18 Inch/100 Foot Boundary Line Strip

In 2007, Jemsco Realty LLC acquired property on the north side of West 47th Street described as 29 West 47th Street. At that time, the lot was improved with a 16-story building, the east wall of which extended to the property line. In 2018, N47 Associates LLC bought the lot immediately to the east, described as 27 West 47th Street. At that time, the lot was improved with a six-story building built in 1924, whose west wall was parallel to and 18 inches east of the property line. Jemsco and N47 asserted competing claims to the 18-inch wide and 100-foot-long strip of land between the west wall of the N47 Building and the east wall of the Jemsco building. There was no dispute that the strip was within the metes and bounds of  N47 Building.

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Residential Coop Tenant Posts Allegedly Defamatory Statements on Website

Did General Manager & Superintendent  State Legally Cognizable Claims?

North Shore Towers Apartments Incorporated is a residential cooperative complex located in Queens. Glen Kotowski and Steven Cairo are employed as the general manager and general superintendent of the complex, respectively. They commenced an action to recover damages for allegedly defamatory statements made by Eric Kozminsky, a resident of the complex. The allegedly defamatory statements about Kotowksi, Cairo and conditions at the buildings, were made through a post on the social networking website NextDoor.com. In the post, Kozminsky, inter alia, reproduced extensive excerpts of filings in an action brought against NST, Cairo, and Kotowski by a former NST employee, and urged other residents to vote in an upcoming election for the NST’s board for directors who would replace the management of the complex. Kozminsky moved to dismiss the amended complaint. Supreme Court denied the motion. Kozminsky appeals.

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Well Pump and System Installed On Neighbor’s Land

Installer and Owner Sue Each Other for Damage

Amber Well Drilling, LLC sued Robert Diegelman for breach of contract and sought the unpaid balance for services in connection with the parties’ contract providing for the installation by Amber of a new well and pump system on Diegelman’s property. Diegelman answered and asserted a counterclaim alleging that the well was actually installed on his neighbors’ property and that, as a result, he was required to purchase the parcel containing the well from his neighbors. The counterclaim sought reimbursement for the money spent by Diegelman for the purchase of that parcel.

The evidence presented at the bench trial in this case established that, although Diegelman provided Amber with a survey of his property, the parties never met to discuss the exact location where the well would be installed, nor did the contract specify the exact location where the well would be installed. Diegelman made two payments to Amber for its services, but after purchasing the parcel containing the well from his neighbors, declined to make full payment to Amber. Following the bench trial, Supreme Court awarded Diegelman $1,456.00, which the court determined was the difference between the cost to him of buying the land where the well was installed, i.e., $6,975.00, and the amount due to Amber under the contract, i.e., $5,549.00. Amber appealed.

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Broker Sues Owner For Commission on Babylon Property Sale

Court Decides If Broker Was Procuring Cause of Transaction

Dalbir Singh purchased real property located in Babylon after signing a sales agreement for the property prepared and executed by R. Matthew Shane, a real estate broker employed by All Island Estates Realty Corp., a real estate brokerage firm. The sales agreement provided that the commission due to ERC was $50,000 “from buyer.” After Singh failed to pay the commission, ERC sued Singh. After a nonjury trial,  Supreme Court rendered a verdict in favor of the ERC and a judgment was entered against Singh in the total sum of $50,910.21. Singh appealed.

To prevail on a cause of action to recover a commission, the broker must establish (1) that it is duly licensed, (2) that it had a contract, express or implied, with the party to be charged with paying the commission, and (3) that it was the procuring cause of the sale. Where the broker is not involved in the negotiations leading up to the completion of the deal, the broker must establish that it created an amicable atmosphere in which negotiations proceeded or that it generated a chain of circumstances that proximately led to the sale.

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Commercial Tenant Sues After Coop Board Rejects Installation of Outdoor HVAC

Did Board Unreasonably Withold Consent/ Breach Fiduciary Duty?

Heykal Properties, LLC, a commercial tenant of Unit 2S in a commercial cooperative building, assert causes of action against the board of 450 West 31St. Owners Corp. and board member Karen Atta for breach of fiduciary duty in rejecting Heykal’s’ proposals to install an HVAC on an outdoor space adjacent to the leased unit. The motion by the board and Atta for summary judgment was denied. And they appealed.

The proprietary lease provided that, to make alterations to a unit, a lessee must first obtain the written consent of the lessor, “which consent shall not be unreasonably withheld.” Where a “reasonableness” standard is imposed, the actions of the board and its members must be legitimately related to the welfare of the cooperative. The board contended that Heykal’s alteration plans were reasonably rejected because the plans sought to use a common element of the building for the tenant’s own exclusive use, and there were concerns about whether the space was structurally sound for the proposed alterations. The board moved for summary judgment..

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