Recovering Legal Fees May Be Harder Than You Think

Legal Talk for Co-ops and Condos

Stewart Wurtzel, partner, Tane Waterman & Wurtzel, is interviewed by Habitat magazine’s Bill Morris.
Lessons for co-op/condo board directors:

• Fat fees. If you’re thinking about going to court, don’t base the decision on whether you're going to recover legal fees, because even if you’re entitled, there are a lot of questions. The fight over legal fees often can overtake the underlying dispute, because sometimes it’s a much bigger number.
• When winners lose. There was a case where a condo unit-owner was illegally renting his apartment on Airbnb. The board won an injunction, but when it tried to recover its legal fees the court said the condo documents did not provide for recovery of attorney’s fees in a non-monetary default situation or it wasn’t recovering common charges. The board won in court to get the conduct stopped, but it was still out about $37,000.
• Time to revise? Check your documents before you do anything. Know going into the fight what the rules are and what your chances are. If, like many co-ops and condos, you don’t have the appropriate language in your governing documents, we strongly recommend that there be a revision to the proprietary lease or bylaws.

The business of running a building is demanding work that requires making endless decisions — some that can quickly lead your board into a quagmire of legal difficulties. Legal Talk interviews New York's leading co-op/condo attorneys to find solutions, and get some guidance, on these challenges. For more co-op and condo insights, sign up to receive Habitat's free newsletters or become a Habitat subscriber today!