A cooperative is allowed to make changes to an apartment over the objections of a cooperative shareholder even though the changes would violate the shareholder’s proprietary lease.
In Goldstone v. Gracie Terrace Apartment Corp., the Court found that the cooperative could make necessary changes to the unit in order to effectuate repairs which would insulate the unit and building from potential water damage. The repairs and renovations effectively reduced the unit’s size by 50 square feet. The appellate court reasoned that while the repairs were necessary, the cooperative would be required to compensate the unit owner with money damages for the reduction in the size of the unit. The Court also ruled that the repairs, and breach of the shareholder’s proprietary lease, was the best option open to the board in effectuating the repairs.