Verina Hixon v 12-14 East 64th Owners Corp.

This Supreme Court action involved a former shareholder who claimed that the coop wrongfully deducted legal fees totaling approximately $250,000 from the proceeds from the sale at the auction of Verina Hixon’s unit. Court recognized that the shareholder’s actions resulted in a great deal of litigation, forcing the coop to engage Rosenberg & Estis, P.C. not only to pursue nonpayment proceedings, but to defend the coop in a multitude of forums, including: four proceeding in civil court, a discrimination claim before the NYC Commission on Human Rights, two Housing Part proceeds, a bankruptcy case and a Supreme Court action. Court found that R&E “demonstrated the reasonableness of the fees the co-op incurred over the course of the numerous litigations between the parties” and dismissed all of Hixon’s claims against the co-op and its officers.

In a separate Article 78 Proceeding, R&E brought suit against the NYC Commission on Human Rights to compel dismissal of Hixon’s discrimination claim on the ground that while the Commission had a reasonable opportunity to complete its investigation yet had made no finding of wrongful conduct, they refused to dismiss the complaint. The Commission refused to dismiss the complaint ad disregarded R&E’s argument that the claim was bogus and Hixon’s eviction from the premises rendered her claim moot. Rather than oppose the petition, Corporation Counsel for the City of NY requested an adjournment to obtain an order of dismissal from the Commission.