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Bill

A 10798

Relates to the recovery of attorneys fees in the event of certain default judgments where a tenant is a dwelling unit owner or shareholder of a cooperative housing corporation

2025 Regular Session Introduced by Michael Benedetto

NY bill allows attorneys' fee recovery in default judgments involving tenant-owners or cooperative housing shareholders, potentially affecting dispute resolution incentives.

REFERRED TO JUDICIARY
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Bill Summary · A 10798

Legislative bill overview

Bill A 10798 addresses attorney fee recovery in default judgment cases involving tenant-owners of dwelling units or cooperative housing shareholders in New York. The bill appears to create or modify provisions that allow for the recovery of attorneys' fees under specific circumstances when default judgments are issued against such tenants.

Why is this important

This bill directly affects housing disputes in New York, particularly in cooperative housing arrangements where individuals own shares but occupy units as tenants. Attorney fee provisions can significantly impact the financial burden of litigation and may influence settlement behavior and access to legal representation in housing disputes.

Potential points of contention

  • Scope of "default judgments": Unclear whether this applies to all default judgments or only specific types of housing-related disputes, which could create conflicting interpretations
  • Asymmetrical fee-shifting: The bill may create imbalanced incentives by allowing one party to recover fees while the other cannot, potentially favoring landlords or tenant-owners depending on how it's structured
  • Impact on settlement incentives: Provisions allowing attorney fee recovery could either deter frivolous claims or discourage settlement by making litigation more economically attractive to pursue

Compiled from official sources — confirm details with the bill’s official record.

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