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HOW LEGAL/FINANCIAL PROBLEMS ARE SOLVED BY NYC CO-OPS AND CONDOS

Evicting Those Bad Apples Known as “Impossibles”

New York City

Co-op evictions
May 25, 2017

Many lawyers and property managers refer them as “Impossibles.” Those shareholders – and every co-op seems to have at least one – who are so toxically obnoxious that they turn life into hell for everyone else in the building. But there’s reason to rejoice: If used properly, co-op boards and shareholders (unlike their condo counterparts) have the legal leverage to evict Impossibles who engage in “objectionable” behavior.

That power comes from a celebrated 2002 legal dustup known as the Pullman case, and subsequent court rulings have only strengthened it as an eviction tool. “It has become one of the go-to cases for boards to cite, and its authority is very strong," attorney Steve Wagner, a partner at Wagner Berkow and a long-time co-op board member, tells Brick Underground. "So much so that other states even on occasion quote the Pullman case – it's been cited as far away as Iowa."

While the power conferred by Pullman is considerable, Wagner advises boards to follow a checklist before moving to evict a shareholder for objectionable conduct:

Make sure your proprietary lease contains a “Pullman” clause.

Check who needs to vote – and the percentage needed for an eviction. Some leases require a vote of shareholders, some require a board vote, some require both.

Give an Impossible a chance. Most leases require that boards give written notice that a shareholder is breaking rules before initiating eviction proceedings.

Document your case. Keep a timeline of Impossible incidents, notices sent to shareholder, and accounts by witnesses of misbehavior. Police reports, photographs, arrest records, videos or other solid proof of their misdeeds are also useful.

Call a meeting the right way. By-laws state how much notice must be given before convening the meeting to determine an Impossible’s fate, whether the meeting is “special” or “regular’; and the precise purpose of the meeting must be stated in advance.

Hire a stenographer. Have someone write down what happens at the meeting, including the testimony of witnesses.

Serve a termination notice. After a vote to evict, the Impossible must receive a termination notice as spelled out in the proprietary lease.

Head to court. The Pullman decision requires a “heightened vigilance” review in court. If the board has acted properly, the court will defer to the will of the shareholders and/or board and kick out the Impossible. These cases are frequently decided on motions for summary judgment, meaning you can win without a trial.

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Learn all the basics of NYC co-op and condo management, with straight talk from heavy hitters in the field of co-op or condo apartments

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