Practice point: In the context of cooperative dwellings, the business judgment rule
provides that a court should defer to a cooperative board's
determination so long as the board acts for the purposes of the
cooperative, within the scope of its authority and in good faith. The business
judgment rule does not apply when a cooperative board acts outside the
scope of its authority or violates its own governing documents.
Student note: Property Law § 234 provides for the reciprocal right of a lessee
to recover an attorney's fee when the same benefit is bestowed upon the
lessor in the parties' lease.
Case: Cohan v. Board of Directors of 700 Shore Rd. Waters Edge, Inc., NY Slip Op 05447 (2d Dept. 2013).
Here is the decision.
Tomorrow's issue: Judicial review of administrative determinations.
