sbj_detailed_recordsBy Kenneth R. Jacobs, Partner Smith, Buss & Jacobs for Habitat Magazine

A 40-year-old cooperative had a 10 percent sublease fee in place for over 30 years. One new shareholder, now subleasing to a high-paying tenant, challenged the propriety of the sublease fee in court. Among other things, he claimed that the cooperative could impose a fee of that size only through an amendment to the proprietary lease, but that the lease had never been amended.