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
Other Sections in This Document (76)
- 13315 Owners Corp. v. Kennedy, 4 Misc. 3d 931 (2004)
- 13315 Owners Corp. v. Kennedy, 4 Misc. 3d 931 (2004)
- 13315 Owners Corp. v. Kennedy, 4 Misc. 3d 931 (2004)
- 13315 Owners Corp. v. Kennedy, 4 Misc. 3d 931 (2004)
- 13315 Owners Corp. v. Kennedy, 4 Misc. 3d 931 (2004)
- 13315 Owners Corp. v. Kennedy, 4 Misc. 3d 931 (2004)
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- 13315 Owners Corp. v. Kennedy, 4 Misc. 3d 931 (2004)
- 13315 Owners Corp. v. Kennedy, 4 Misc. 3d 931 (2004)
Full Text
1,093 charsWhen a petitioner brings a summary eviction proceeding under Pullman, the court must engage in two phases of analysis. During the first phase, the court must decide whether to apply the business judgment rule and defer to the board or shareholder’s vote on whether the shareholder-tenant engaged in objectionable conduct. The court will apply the business judgment rule, and a petitioner will be granted summary judgment, unless the respondent can show that the petitioner acted (1) outside the scope of its authority, (2) in a way that did not legitimately further the corporate purpose, or (3) in bad faith. It is not enough for a shareholder to show how “unpalatable” the impact of the board’s actions have been. The shareholder must show that the board’s actions were improper. (See Park City 3 & 4 Apts. Inc. [Zeronian], 2003 NY Slip Op 50673[U], *3 [App Term, 2d Dept, 2d & 11th Jud Dists 2003] [finding board’s determination to reassign parking spaces proper because landlord possessed authority to do so and because determination had legitimate relationship to cooperative’s welfare].)