Matter of Healy v. Carriage House Condominium
New York, New York County · NY · New York Supreme Court, Appellate Division, First Department
Member win · records
What happened
Unit owners brought an Article 78 petition to compel Carriage House Condominium to produce books and records (including correspondence with a contractor/principal and settlement-related documents) and related relief. Supreme Court ordered production of some categories but not others. On appeal, the First Department modified to expand production of correspondence and settlement-process documents tied to a proper investigative purpose, and otherwise affirmed (Nov. 20, 2018). An unpreserved challenge to board election validity was not reached.
What the court (or agency) held
Unit owners' common-law books-and-records inspection reaches correspondence and settlement-process documents reasonably related to a proper investigative purpose. The First Department expanded the production order beyond what Supreme Court had required for those categories, while affirming other aspects—member win on inspection scope.
Why this matters for members
New York common-law inspection is purpose-driven: if owners investigate specific dealings (contractor/sponsor settlement), related correspondence and settlement records can be within scope even when a board resists. Preserve election challenges in the trial court or lose them on appeal.
What the member did
Specified document categories tied to investigating NY Urban dealings and the sponsor settlement process as proper inspection purposes.
What did not work
Challenge to board election validity was unpreserved; injunction against paying certain subpoena legal expenses was denied.
Questions for the board
- When owners request correspondence or settlement files, how do we evaluate "proper purpose" and privilege claims in writing?
- What categories of records do we routinely produce versus withhold, and under what bylaw/statutory authority?
- How do we document board elections so election challenges are not later mixed into records petitions?
Questions for a lawyer
- What is the current First Department framework for common-law condo records inspection and proper purpose?
- How should an Article 78 petition itemize document categories to maximize production?
- What privilege/work-product limits typically apply to settlement correspondence?
Citation
Matter of Healy v. Carriage House Condominium, 166 A.D.3d 518, 2018 NY Slip Op 07970 (1st Dep’t 2018) (2018-11-20). New York Supreme Court, Appellate Division, First Department. Outcome chip: records hub / secondary. Source: https://www.nycourts.gov/reporter/3dseries/2018/2018_07970.htm
_General information, not legal advice. Outcomes turn on facts and current law._
General information, not legal advice. Outcomes turn on facts and current law.