New York's Cooperative and Condominium Community

Habitat Magazine Insider Guide

HABITAT

ARCHIVE ARTICLE

Unreasonable Conduct

40 West 67th Street v. Pullman

In this landmark 2003 ruling, the State Court of Appeals upheld a co-op board’s right to terminate a proprietary lease for objectionable conduct by a shareholder. The ruling affirmed that co-op boards are protected by the Business Judgment Rule, which says the courts will not second-guess board decisions, provided they’re made “in good faith and in honest judgment in the lawful and legitimate furtherance of corporate purpose.”

______________________________________________________________________________________________________________________________________

"If you have a troublesome resident who’s causing havoc in the building, you do have a remedy: you can seek eviction. It causes distress within the building, and it causes uncertainty, but if you follow the rules you can successfully evict the troublesome tenant. The law gives your board the ultimate power to do so, and adhering to the proper procedures may allow you to get rid of this person without going to trial and presenting live testimony by witnesses."

To read the full lecture, visit: http://bit.ly/LMontana

Subscriber Login


Ask the Experts

learn more

Learn all the basics of NYC co-op and condo management, with straight talk from heavy hitters in the field of co-op or condo apartments

Professionals in some of the key fields of co-op and condo board governance and building management answer common questions in their areas of expertise

Source Guide

see the guide

Looking for a vendor?