Mediating Co-op and Condo Disputes

CNYC thanks Abigail Pessen for the following guest article. A former commercial litigator, Ms. Pessen now mediates business and employment disputes in New York City.

These examples are all too commonplace in the densely-populated and intensely litigious city of New York; indeed, all are loosely based on actual cases. Each almost certainly would have been disposed of in a single, inexpensive session with a skilled mediator. Yet no co-op or condo board ever suggested, let alone mandated mediation.

Mediation can be a very powerful tool for settling disputes. By engaging a mediator for a single day, boards can quickly dispose of unpleasant and time-consuming problems at a fraction of the cost of litigation. And if the mediation does not succeed (a very small percent of the time), all that has been lost is a minor investment of time and money. Communications made during the mediation are confidential and either side is free to proceed with a lawsuit if not satisfied with the proposed resolution.

In mediation, the parties themselves attempt to resolve their dispute with the mediator's assistance. The mediator has no authority to impose a solution; rather, he/she explores the interests underlying the dispute and helps to develop options that satisfy the parties' respective needs.

Specifically, in the three examples cited above, within a day or half a day the mediator might:

In the first case, help the Board and shareholder fairly apportion the repair and tile replacement costs, by discussing the necessity for the work, the time spent by the contractor to replace the additional tiles, the benefit (if any) to the shareholder in using the Board's contractor, etc.

In the second case, help the shareholder and Board find a reasonable way to protect the co-op in the event of default, while giving effect to the divorce decree.

In the third case, facilitate a resolution between the unit owner and tenant by discussing both sides' grievances and crafting a stipulation/ protective order providing for penalties in the event of violation.

CNYC has long advocated mediation for resolving disputes of this nature. Ms Pessen and other mediators knowledgeable about cooperatives and condominiums have helped bring adversaries to the table, to hear one another's point of view and to put together a reasonable compromise. For the names and numbers of mediators to help your cooperative or condominium bring disputes to resolution, call CNYC at (212) 496-7400.