Opinion
November 13, 1997
Appeal from the Supreme Court, New York County (Walter Schackman, J.).
The offering plan to the cooperative conversion provided that the sponsor would, at its own expense, make an application for Real Property Tax Law § 421-a tax exemption benefits that "may be available". The sponsor did submit an application for those benefits and, when they were refused, resorted to legal action (see, Matter of Gramercy N. Assocs. v. Biderman, 169 A.D.2d 345, lv denied 78 N.Y.2d 863). Therefore, there was good faith compliance with the foregoing section of the offering plan, which did not guarantee that the sponsor's application would obtain the benefits. The cooperative's reliance on 13 NYCRR 21.3 (k), which required the sponsor to use its best efforts in obtaining the benefits, was properly rejected by the IAS Court on the ground that that regulation was promulgated under the Martin Act (General Business Law § 352-c), for which there is no private right of action (CPC Intl. v. McKesson Corp., 70 N.Y.2d 268, 276-277). Plaintiff's remedy, if any, lies with the Attorney General.
Concur — Sullivan, J. P., Milonas, Wallach, Williams and Tom, JJ.