Board Disapproves Sale of Eighth Apartment to Tenant-Shareholder

May 31, 2010

LVT Number: #22661

Tenant-shareholder sued landlord cooperative corporation, its managing agent, and individual co-op board members, claiming discrimination based on national origin and breach of fiduciary duty. Tenant held shares to seven apartments in the building and sought to buy an eighth apartment. When the board disapproved the sale, he claimed discrimination against non-Israelis. The court dismissed the case without a trial. Tenant appealed and lost. There was no evidence of discrimination, bad faith, or tortuous conduct by any of the co-op board members.

Tenant-shareholder sued landlord cooperative corporation, its managing agent, and individual co-op board members, claiming discrimination based on national origin and breach of fiduciary duty. Tenant held shares to seven apartments in the building and sought to buy an eighth apartment. When the board disapproved the sale, he claimed discrimination against non-Israelis. The court dismissed the case without a trial. Tenant appealed and lost. There was no evidence of discrimination, bad faith, or tortuous conduct by any of the co-op board members. The co-op’s decision was supported by the business judgment rule.

Sayeh v. 66 Madison Avenue Apt. Corp.: NYLJ, 5/10/10, p. 28, col. 3 (App. Div. 1 Dept.; Mazzarelli, JP, Sweeny, Freedman, Richter, Manzanet-Daniels, JJ)

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