Practice point: The Appellate Division reversed, and granted the board's president and a board member's motion to dismiss. In an action involving a coop, 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. While decision-making based on discriminatory considerations is not protected by the business judgment rule, the Appellate Division determined that the amended complaint contained only conclusory allegations of discrimination, without any factual basis. Moreover, the amended complaint was devoid of allegations that the defendants acted tortiously, other than within the scope of their authority as board members.
Student note: As the plaintiffs failed to allege that the defendants entered their property without permission at any time, they failed to state a cause of action sounding in trespass.
Case: Cohen v. Kings Point Tenant Corp., NY Slip Op 02088 (2d Dept. 2015)
Here is the decision.
Tomorrow's issue: "Structure" and "demolition" within the meaning of the Labor Law, and the recalcitrant worker defense.
