Co-op Can Terminate Shareholder's Proprietary Lease Based on Objectionable Conduct

Landlord cooperative corporation sued to eject co-op shareholder tenant based on tenant's objectionable conduct. Landlord claimed that tenant constantly harassed her neighbors, and asked the court to rule in its favor without a trial. The court ruled for landlord.

Tenant appealed and lost. Landlord's decision to terminate tenant's proprietary lease was protected by the business judgment rule. There was no indication that landlord acted outside the scope of its authority or other than for the purposes of the cooperative. The co-op's decision was made in compliance with the required procedure set forth in tenant's lease. Tenant claimed that her tenancy was terminated in retaliation for her own complaints against her neighbors and her requests for a disability accommodation. But she offered no proof to support this claim aside from speculative statements in her affidavit in opposition to the co-op's request to grant ejectment. There was no indication of bad faith on the co-op's part that would warrant closer review of its decision. Tenant also didn't refute any of landlord's objectionable conduct claims.

Rivercross Tenants' Corp. v. Kovach: Index No. 161789/2019, App. No. 17173, Case No. 2022-01313, 2023 NY Slip Op 00285 (App. Div. 1 Dept.; 1/24/23; Kapnick, JP, Gonzalez, Mendez, Shulman, Higgitt, JJ)