Co-op Board Disapproved Tenant’s Proposed Sale of Apartment

September 19, 2015

LVT Number: #26483

Cooperative shareholder tenant sued landlord co-op corporation for breach of fiduciary duty after the board disapproved tenant’s proposed sale of the apartment. The court denied landlord's request to dismiss the case without a trial. Landlord appealed and won. The business judgment rule protected the board’s decision not to approve the sale in the manner proposed by tenant. Tenant had neither identified nor secured a financially responsible buyer. 

 

 

 

Cooperative shareholder tenant sued landlord co-op corporation for breach of fiduciary duty after the board disapproved tenant’s proposed sale of the apartment. The court denied landlord's request to dismiss the case without a trial. Landlord appealed and won. The business judgment rule protected the board’s decision not to approve the sale in the manner proposed by tenant. Tenant had neither identified nor secured a financially responsible buyer. 

 

 

 
Buccellato v. High View Estates Owners, Corp.: 2015 NY Slip Op 06703, 2015 WL 5125529 (App. Div. 2 Dept.; 9/2/15; Mastro, JP, Balkin, Chambers, Maltese, JJ)

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