Berglund v. 411 East 57th Corporation

Full title: ALBERT I. BERGLUND, Respondent, v. 411 EAST 57TH CORPORATION, Appellant

Court: Appellate Division of the Supreme Court of New York, First Department

Date published: Mar 11, 1986

118 A.D.2d 431 (N.Y. App. Div. 1986)

Opinion

March 11, 1986

Appeal from the Civil Court, New York County (David Saxe, J.).

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 N.Y.2d 556).

Concur — Kupferman, J.P., Ross, Asch, Fein and Kassal, JJ.