Condo Board Acted Properly by Replacing Roof

Condominium unit owners sued condo board, which had replaced the building's roof despite individual unit owners' renovation work.  The court ruled against the unit owners, who appealed and lost. The unit owners claimed that board members acted out of self-interest and singled out unit owners for disparate treatment. But the court and appeals court found that the condo board members were protected by the business judgment rule and didn't breach their fiduciary duty by not informing themselves about the status of unit owners' renovations before considering roof replacement. The board consulted with engineers and building management concerning the need to replace the roof, as well as alternative actions, to address water infiltration. The board found that more limited measures were unsuccessful and that the status of unit owners' renovations wasn't relevant to the board's interest in maintaining the building.

345 East 50th Street LLC v. Board of Managers: 166 A.D.3d 546, 2018 NY Slip Op 08090 (App. Div. 1 Dept.; 11/27/18; Renwick, JP, Tom, Webber, Kahn, Moulton, JJ)