Landlord Co-op Corporation Can Terminate Proprietary Lease

Landlord cooperative corporation terminated co-op shareholder’s proprietary lease based on objectionable conduct. Lessee then sued landlord and asked the court to vacate the termination notice. Landlord in turn asked the court for a judgment of possession and an eviction warrant. The court ruled against lessee. Landlord had received many complaints about lessee’s behavior, and the board had voted to terminate her proprietary lease and cancel her shares. The co-op corporation was allowed to do this under the business judgment rule, in order to protect the building’s other shareholders. New York’s highest court previously had ruled that a proprietary lease could be terminated based on a course of objectionable conduct.

Perry v. 61 Jane Street Tenants Corp.: Index No. 103689/11, NYLJ No. 1202494916480 (Sup. Ct. NY; 5/10/11; Oing, J)