December 2, 2025
In Scott Roth, et al. v. Board of Managers of 299 West 12th Street Condominium, plaintiffs filed breach of fiduciary duty and nuisance claims against a condominium board based on allegations that the board had not done what it should have to prevent the use of a residential condo unit as an office. The trial court had dismissed plaintiffs’ claims at the summary judgment phase. But on appeal, Schlam Stone obtained a reversal.
In a decision dated December 2, 2025, the Appellate Division, First Judicial Department unanimously modified the trial court's decision. The First Department held that the trial court should have denied the motion insofar as it sought dismissal of plaintiffs’ cause of action for breach of fiduciary duty, citing the “sharply contrasting evidence concerning whether and to what extent defendant investigated plaintiffs’ complaints and whether defendant fulfilled its fiduciary obligation to enforce the condominium bylaws.”
Schlam Stone partner Erik S. Groothuis and counsel Channing J. Turner represented the plaintiffs, who were the successful appellants. The index number in the trial court (New York State Supreme Court, New York County) was 154315/22 and the case number on appeal was 2025-00394.