Co-op Can Evict Shareholder Tenant for Objectionable Conduct

Landlord cooperative corporation sued to evict shareholder tenant for objectionable conduct. The trial court ruled for landlord. Tenant appealed and lost. Under the business judgment rule, the co-op board acted within the scope of its authority and in good faith to further its legitimate interests. Landlord followed procedures in tenant's proprietary lease to terminate the tenancy. Tenant's "vexatious"  litigation against the co-op and its board members was frivolous and consisted of duplicate actions. This caused the co-op considerable expense and loss of insurance coverage. Tenant's objectionable conduct also continued after being given many opportunities by the co-op to be heard. Tenant failed to raise anything to support her claim that the board acted outside the scope of its authority in a manner not protected by the business judgment rule.

800 Grand Concourse Owners Inc. v. Thompson: Index No. 570029/21, 2021 NY Slip Op 50602(U)(App. T. 1 Dept.; 6/25/21; McShan, JP, Brigantti, Hagler, JJ)