## Facts

- Bernard Shor held 1,400 shares in a cooperative corporation and an appurtenant proprietary lease for a duplex apartment.
- The proprietary lease granted the cooperative corporation a contractual “first lien” on Shor’s shares for monetary obligations under the lease.
- Shor granted Chase Manhattan Bank a security interest and general lien in his personal property interests; Chase held the stock certificate and proprietary lease as collateral.
- Fidelity National Bank of Pennsylvania obtained and docketed a money judgment against Shor but did not execute or levy on the cooperative interest.
- The State Tax Commission later filed a tax warrant against Shor, and Chase later obtained its own judgment.
- Shor defaulted on maintenance charges and was evicted; the cooperative corporation asserted a first lien for arrears, interest, expenses, and attorneys’ fees.
- The cooperative interest was sold with authorization from other claimants, producing proceeds for distribution among competing creditors and lienors.
- Fidelity claimed priority to the proceeds on the theory that Shor’s cooperative interest was “chattel real” (real property) so that docketing its judgment created a lien under CPLR 5203.

## Issues

1. Whether a cooperative apartment interest consisting of inseparable cooperative shares and a proprietary lease is “chattel real” (real property) for purposes of CPLR 5203.
2. If not real property, whether a judgment creditor obtains a lien on such an interest merely by docketing its judgment.

## Decision

- The Court of Appeals affirmed the order distributing proceeds without giving Fidelity priority.
- The court held that the cooperative shares and proprietary lease are not “chattel real” and are not “real property” within CPLR 5203 for judgment-lien priority.
- Because the interest is treated as personal property for these purposes, docketing Fidelity’s judgment did not create a lien on the cooperative interest.
- Fidelity’s priority claim failed because it did not perfect a lien using procedures applicable to personal property.

## Legal Principles

- CPLR 5203 confers a lien upon docketing only as to a debtor’s real property; the statute does not extend to a typical cooperative apartment interest for creditor-priority purposes.
- A tenant-shareholder’s cooperative interest (shares plus proprietary lease) is a single, inseparable interest that may be classified differently depending on the statutory context.
- For judgment-creditor priorities, the cooperative interest is treated as personal property, aligning with commercial practice (possession of the certificate and lease, secured transactions) and legislative policy reflected in related statutory developments.
- A judgment creditor seeking priority in personal property must use personalty enforcement mechanisms (e.g., levy or other authorized steps); docketing alone is insufficient.

## Conclusion

The court treated the cooperative apartment interest as personal property for CPLR 5203, so docketing a judgment did not give Fidelity a lien or priority in the sale proceeds; priority depended on proper perfection and enforcement under rules governing personal property.


State Tax Comm’n v. Shor, 43 N.Y.2d 151, 371 N.E.2d 523 (N.Y. 1977)