BEHLER v. TEN EIGHTY APARTMENT CORP., 2001 N.Y. Misc. LEXIS 1362

Summary

The owners alleged that their apartment was damaged by negligent renovations to the apartment located directly over their apartment. In connection with renovation work to their own apartment, the owners entered into an agreement with the cooperative corporation which stipulated that the renovation work would be completed by a date certain. Among other things, that agreement imposed a fee of $ 100 per day for each day from the commencement of the alteration until completion and a fee of $ 500 per day for each day of delay in completing the renovations. The court found that the subject provision was unenforceable as an unreasonable penalty, since the fee charged as a result of the delay in completing renovation work ($ 500 per day, as opposed to the $ 100 per day alteration fee charged by the cooperative corporation for its probable loss) was disproportionate to any real loss or expenses incurred. Although the cooperative corporation was not entitled to recover the $ 32,000 assessed ...