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40 West 67th Street v. Pullman

(2003)

New York Court of Appeals - 790 N.E.2d 1174

tl;dr:

The decisions of a co-op or condominium board are subject to deference under the business judgment rule.

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Facts & Holding40 West 67th Street v. Pullman case brief facts & holding

Facts:Pullman lived in a condo building. He had made several...

Holding:The court held that since the co-op had acted reasonably...

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40 West 67th Street v. Pullman | Case Brief DeepDive
Majority opinion, author: Rosenblatt, J.
Level 1
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The court upheld a cooperative's decision to terminate a shareholder-tenant's tenancy due to objectionable conduct, including false accusations, physical altercation, and unauthorized alterations to the apartment. The business judgment rule is the appropriate standard of review for evaluating decisions made by residential cooperative corporations. The defendant's disruptive behavior violated house rules, and the cooperative followed the lease agreement and sent timely notice of the meeting to all shareholders. The court affirmed that the business judgment rule applies to challenges made by shareholder-tenants to decisions made by residential cooperative corporations. The business judgment rule requires courts to defer to a cooperative board's decision as long as it is made in good faith, within the scope of its authority, and for the purposes of the cooperative. The cooperative reserved the authority to determine objectionable conduct and terminate the tenancy, as per their agreement.

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