Batsidis v. Wallack Management Co.
This case concerns a dispute between a proprietary lessee (plaintiff) and a cooperative corporation and its management company (defendants) over the scope and enforcement of a cost-shifting provision in an alteration agreement. The plaintiff's renovation work was halted, leading to a stipulation allowing him to resume work under specified conditions. However, defendants subsequently sought to impose payment of legal and engineering fees, incurred due to the renovation issues, as a new precondition for the work to continue. The appellate court found the cost-shifting provision itself valid and enforceable, but ruled that the defendants forfeited their right to impose the fee payment as a new condition for resuming work since it was not part of the initial court-ordered stipulation. Consequently, the lower court's decision, which denied the plaintiff's motion to resume work without paying the fees, was reversed, and the plaintiff was permitted to continue the renovations.