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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)

Full Text

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Because petitioner cooperative seeks to terminate respondent shareholder-tenant’s proprietary lease, the court must use “heightened vigilance” in assessing the board’s exercise of its business judgment. (See Horwitz v 1025 Fifth Ave., Inc., 7 AD3d *944461, 462 [1st Dept 2004, mem] [noting that because cooperative did not seek to terminate plaintiffs lease, proceeding did not warrant héightened vigilance in assessing board’s exercise of business judgment].) With the danger inherent in deferring to votes, the court cannot allow the business judgment rule to “serve as a rubber stamp for cooperative board actions, particularly those involving tenancy terminations.” (Pullman, 100 NY2d at 157.)