MATTER OF KRODEL v. AMALGAMATED DWELLINGS INC.

7384. 152176/14.

166 A.D.3d 412 (2018)

88 N.Y.S.3d 31

2018 NY Slip Op 07531

In the Matter of Natalie Krodel, Respondent, v. Amalgamated Dwellings Inc., Appellant, et al., Respondents.

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

Decided November 8, 2018.


This case requires us to determine whether a provision in a lease agreement is enforceable where it provides for payment of attorneys' fees to a lessor even if the lessor is in default. We find that such a provision is unconscionable and unenforceable as a penalty.

Respondent Amalgamated Dwellings Inc. is a residential cooperative corporation. In 2001, petitioner, a tenant-shareholder in respondent's building, purchased shares to an apartment in the building and executed...

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