In two companion cases, Partner Evan Richman obtained a dismissal of lawsuits brought by estates of deceased tenant/cooperators against the largest Mitchell-Lama cooperative complex to leave the Mitchell-Lama system and then reconstitute as a private cooperative on the ground that Plaintiffs lacked standing to sue. The Appellate Division affirmed, holding that Plaintiffs did not qualify as the shareholder of record with respect to the deceased tenant/cooperator’s apartment. The Court held that that the evidence Plaintiffs presented to the Court (stock certificates issued to the decedent) were not automatically transferred to the Plaintiffs upon the decedent’s death, and that the Plaintiffs failed to identify any other family member of the decedent who satisfied the statutory requirements for succession rights (see 9 NYCRR 1727-8.2 [a]).
A copy of the decisions can be found here:
http://www.nycourts.gov/reporter/3dseries/2016/2016_08476.htm
http://www.nycourts.gov/reporter/3dseries/2016/2016_08477.htm\