Cooperative Board Can Terminate Lease

January 1, 2005

LVT Number: 17841

Facts: Cooperative board sued to evict cooperative shareholder for objectionable conduct. The board had warned shareholder repeatedly, but his behavior only worsened. The board claimed that shareholder played his stereo loudly, stole from other tenants who used building facilities, walked around the building's public areas partly naked, and had sex with a homeless man in the building's health club showers. The board claimed that it relied on its business judgment and was entitled to evict. It asked the court to rule without a trial. Court: Cooperative board wins.

Facts: Cooperative board sued to evict cooperative shareholder for objectionable conduct. The board had warned shareholder repeatedly, but his behavior only worsened. The board claimed that shareholder played his stereo loudly, stole from other tenants who used building facilities, walked around the building's public areas partly naked, and had sex with a homeless man in the building's health club showers. The board claimed that it relied on its business judgment and was entitled to evict. It asked the court to rule without a trial. Court: Cooperative board wins. The board's vote to terminate the shareholder's lease was entitled to deference under the business judgment rule. So the court didn't have to decide whether there was sufficient proof to support the board's decision.

London Terrace Towers Inc. v. Davis: NYLJ, 12/22/04, p. 24, col. 1 (Civ. Ct. NY; Lebovits, J)

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