June 7, 2011
Lerch, Early & Brewer's Legal Update
Bill Goldberg, a litigator at Lerch, Early & Brewer, prevailed at trial by persuading a Circuit Court judge to dismiss all claims brought against our client Promenade Towers Mutual Housing Corporation and the individual members of the Promenade’s Board of Directors. The Promenade, which is Maryland’s largest housing cooperative, recently passed an amendment to its bylaws preventing owners of investment properties at the Promenade from receiving the benefits of homestead tax credits, which the State of Maryland grants only to residents. In this case, the plaintiff claimed that he was entitled to a portion of the homestead tax credits based on his ownership of stock in the co-op, even though he has never been a Promenade resident. Bill worked closely with the board of directors to aggressively defend these claims, and convinced the judge to rule in favor of the Promenade at the close of the plaintiff’s case. This was the first time a Maryland court has considered this issue and the ruling provides necessary guidance to co-op boards across the state considering bylaw amendments affecting the allocation of tax credits.
Please note that every case is different, and prior results do not guarantee future success.
