13315 Owners Corp. v. Kennedy, 4 Misc. 3d 931 (2004)

Citation: 13315 Owners Corp. v. Kennedy, 4 Misc. 3d 931 (2004)
Parent Document: 13315 Owners Corp. v. Kennedy, 4 Misc. 3d 931 (2004)
Jurisdiction: New York (state)
Effective Date: 2004-06-29
Original Source: https://www.courtlistener.com/opinion/6305035/13315-owners-corp-v-kennedy/ ↗

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It is unclear whether Pullman applies to this proceeding, which involves a board of directors’ vote rather than a shareholders’ vote.* (See Cooperatives: Business Judgment Rule Permits Shareholder Removal, 33 Real Est L Rep 3, 3 [July 2003] [noting that Pullman left open whether board of directors’ vote to terminate tenancy, as distinguished from shareholders’ vote, can be reviewed under business judgment rule]; Hot Topics Affecting Cooperatives & Condominiums 2004, at 10 [unpublished ABCNY CLE handout 2004] [mem from Jason LoMonaco and Howard Schechter; noting that although many cooperatives’ proprietary leases “contain( ) an objectionable conduct provision authorizing the coop to determine objectionable conduct on the part of a shareholder by vote of the Board of Directors only(, it) is not entirely clear that Pullman protects such a determination from court scrutiny”].) The Court of Appeals’ language in Pullman implies that Pullman applies to this proceeding, but the Court’s language is dicta. (See Vincent Di Lorenzo, New York Condominium and Cooperative Law § 11:8, 2003 Pocket Part, at 139 [2d ed] [noting that Pullman’s “general language did not distinguish between decisions of the board and decisions of the shareholders”].)

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