Jones v. Fordham Hill Owners Corp

In Jones v. Fordham Hill Owners Corp, 225 A.D.2d 465 [1st Dept 1996], the proprietary lessee of Apartment 8-3E in the Fordham Hills cooperative complex purchased the shares to Apartment 4-9G, a second apartment. According to the terms of the proprietary leases for the two apartments, and the proprietary leases for all other shareholders in the complex, maintenance payments were due on the first day of each month in an amount proportional to the number of shares that were owned. After the proprietary lessee failed to pay maintenance for Apartment 4-9G, he was served with a notice to terminate the proprietary lease for the second apartment. Mr. Jones responded by filing an action for declaratory and injunctive relief. In it, he alleged that the former chairperson of the board of directors orally agreed to waive the maintenance payments for the second apartment until such time as the plaintiff's shares to the first apartment were sold. Upon the defendant's default, the plaintiff was granted a preliminary injunction in Supreme Court enjoining Fordham Hill from terminating the proprietary lease to the second apartment. The apartment corporation, which thereafter succeeded in partially vacating its default, lost its motion for summary judgment, and appealed the adverse ruling. On appeal, the First Department rejected the premise that an oral agreement can relieve a proprietary lessee from paying financial obligations that other shareholders in the same class are required to pay.