“Two shareholders who were on the verge of moving out undertook a repair in their
home on their own, not hiring a professionally licensed mason to conduct the
repairs. They are now submitting a bill for personal reimbursement. The
shareholder is not a professional or licensed mason nor a repair person. Their
claim is “we told you we wanted that wall fixed” but they never, ever informed the board that they themselves would undertake
the repair. They knew their interior wall leak issue was a part of a much
larger capital improvement project 799 Greenwich Street will undertake in
spring of 2015, so they knew they had to wait for that to be done for the leaks
to go away permanently. This exterior project was discussed at length over two
years. One or both of them were in attendance at each meeting. Now they are
moving out of 799 Greenwich Street on this Monday and they just submitted a
bill from the husband/ shareholder for 15 hours of his personal time. Does 799
Greenwich Street Tenants Corporation owe them anything? The co-op officers,
board and building committee had no idea the shareholder undertook this alleged
15-hour repair himself. He never gained the board or building committee’s permission to make this repair nor was he ever promised reimbursement. Here we
have strict policy that only licensed and insured persons conduct any repair,
no matter how small. He is neither. Do we have to reimburse for the repairs?
—-I Owe U
“The tenant shareholder is not owed anything,” says Phyllis Weisberg, a partner with the New York City law firm of Montgomery
McCracken Walker & Rhoads, LLP. “More importantly, a tenant-shareholder who undertakes unauthorized work not only
violates the proprietary lease, and potentially the law, if, for example, a
Buildings Department permit was required and not obtained, but also may be
liable to the co-op for any loss or expenses incurred by the co-op resulting
from the unauthorized work.
“By doing unauthorized work, the tenant shareholder deprived the co-op of the
opportunity to review the nature, extent and quality of the work. Work performed by someone who is unlicensed may actually cause damage that may
cost substantial sums to repair or impair existing warranties on parts of the
building. Work done without proper insurance deprives the co-op of protection
in the event of property damage or physical injury caused by the work. Work
done without proper permits exposes the co-op to violations. Finally, whereas if the co-op had hired someone to do the work, the co-op would
have obtained a warranty of some sort, the co-op was deprived of that as well
by unauthorized work.”
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