Landlord Co-op Corporation Properly Terminated Proprietary Lease under Business Judgment Rule

May 23, 2023

LVT Number: #32568

Landlord cooperative corporation sued to evict shareholder tenant after sending a notice to cure and tenancy termination notice. Landlord claimed nuisance by apartment occupants, who were tenant's licensees--her son and his partner. The court denied occupants' request to dismiss the case. The co-op terminated tenant's proprietary lease after calling a special board meeting and giving the occupants a chance to present proof. The court found that it must defer to the business judgment rule applicable to cooperative boards.

Landlord cooperative corporation sued to evict shareholder tenant after sending a notice to cure and tenancy termination notice. Landlord claimed nuisance by apartment occupants, who were tenant's licensees--her son and his partner. The court denied occupants' request to dismiss the case. The co-op terminated tenant's proprietary lease after calling a special board meeting and giving the occupants a chance to present proof. The court found that it must defer to the business judgment rule applicable to cooperative boards.

1710 Owners Corp. v. Sussman: Index No. LT 320415-22, NYLJ No. 1683044940 (Civ. Ct. Kings/ 4/25/23; Cohen, J)

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