Co-op Shareholder Tenant Denied Injunction to Stop Board from Terminating Lease
LVT Number: #32300
A cooperative shareholder tenant sued landlord cooperative corporation and asked the court for a preliminary injunction to stop landlord from terminating his proprietary lease. Landlord had sent tenant a notice outlining tenant's objectionable conduct and held a special meeting to consider terminating the lease. Tenant claimed that the co-op board decided to terminate his lease as an act of retaliation after he asked to inspect the co-op's records.
The court ruled against tenant because the business judgment rule protected the co-op board's determination based on its documented history of tenant's misconduct and the opportunities the board gave tenant to change his behavior. This showed that the co-op acted in good faith within the scope of its authority. The court didn't find justification for granting the extreme relief of an injunction.
Haimovici v. Castle Vil. Ownesr Corp.: Index No. 156094/2022, 2022 NY Slip Op 32863(U), NYLJ No. 1662445452 (Sup. Ct. NY; 8/23/22; Bluth, J)