Co-op Shareholders Claim Retaliation by Co-op Board After Complaints About Drinking Water

Co-op shareholder tenants sued their building's cooperative corporation for retaliation under RPL Section 223-b. They claimed that the co-op board issued a default notice just five weeks after the they complained about the quality of the water in their apartments. The shareholders also claimed breach of fiduciary duty by pleading that the co-op board engaged in misconduct by failing to investigate or address their complaints and retaliating against them. The shareholders said they suffered damages due to the co-op's misconduct. The co-op board asked the court to dismiss many of the shareholders' claims without trial. The court ruled against the co-op because it didn't provide sufficient documentation in support of its request. The court also denied the shareholders' request to disqualify the co-op's attorney since that claim was based only on speculation.

Gentile v. 2400 Johnson Ave. Owner, Inc.: Index No. 807753/22, App. No. 1593-1594, Case No. 2023-05222, 2023-05476, 2024 NY Slip Op 00863 (App. Div. 1 Dept.; 2/20/24; Singh, JP, Moulton, Gesmer, Mendez, Rodriguez, JJ)