HABITAT
Huh? Court Rules Co-op Boards Have No Fiduciary Duty—but Board Members Do.
Written by Richard Siegler & Dale J. Degenshein on June 26, 2012
Barbara Hubshman, a co-op shareholder at 1010 Fifth Avenue in Manhattan, sued her board, each individual member, the managing agent and others, claiming that they failed to maintain the building, as required by the proprietary lease — and tried to conceal from residents and possibly governmental agencies dangerous conditions that existed in a the building's fireplaces and flues. In fact, she claimed, the board even went so far as to encourage residents to use their dangerous fireplaces even though the board knew there were problems with the chimney.
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