Board Can Bar Co-op Tenants from Parking on Grass Outside Building

November 28, 2016

LVT Number: #27368

Cooperative shareholder tenants sued the co-op’s board of directors, claiming that the board breached its fiduciary duty to them by barring them from parking on grass behind their building. The court granted the board’s request to dismiss the complaint. Tenants appealed and lost. The board’s decision to enforce parking rules and prohibit parking in the grass was protected by the business judgment rule. The board acted in the best interest of all co-op members after making a number of capital improvements that added to the aesthetics and value of the property.

Cooperative shareholder tenants sued the co-op’s board of directors, claiming that the board breached its fiduciary duty to them by barring them from parking on grass behind their building. The court granted the board’s request to dismiss the complaint. Tenants appealed and lost. The board’s decision to enforce parking rules and prohibit parking in the grass was protected by the business judgment rule. The board acted in the best interest of all co-op members after making a number of capital improvements that added to the aesthetics and value of the property.

 

 

Beach Point Partners v. Beachcomber Ltd.: 2016 N.Y. Slip Op. 07284, 2016 WL 6605184 (App. Div. 2 Dept.; 11/9/16; Dillon, JP, Hinds-Radix, Maltese, Barros, JJ)

Topics

More like this