The business judgment rule and coop and condo boards.

The business judgment rule is applicable to the board of directors of cooperative and condominium corporations.  Pursuant to the rule, a court should defer to the board's determination so long as the board acts for the purposes of the cooperative of condominium, within the scope of its authority and in good faith. Unequal treatment of shareholders is sufficient to overcome the directors' insulation from liability under the rule, and a director who participates in the commission of a tort committed by the board may be held individually liable.

72 Poplar Townhouse, LLC v. Board of Mgrs. of the 72 Poplar St. Condominium, NY Slip Op 00606 (2d Dep't February 7, 2024)

Here is the decision.

Summary judgment in lieu of complaint.

Because the guaranty at issue reserves to defendant guarantor all defenses that were or may be available to the guaranteed party under a complex commercial contract, it does not qualify as the type of unconditional obligation that is appropriate for treatment under CPLR 3213.

Vitol Ams. Corp. v. Targa Resources Partners LP, NY Slip Op 00466 (1st Dep't February 1, 2024)

Here is the decision.

Failure to answer.

A defendant who has failed to timely answer a complaint and who seeks leave to file a late answer must provide a reasonable excuse for the delay and demonstrate a potentially meritorious defense to the action.

Citimortgage, Inc. v. Sparozic, NY Slip Op 00403 (2d Dep't January 31, 2024)

Here is the decision.

Court holiday.

Statutes of limitations.

A cause of action for breach of fiduciary duty based on allegations of actual fraud is subject to a six-year limitations period, except where the fraud allegation is only incidental to the claim asserted.  According to the allegations in the complaint, the sponsor's principals' actions in concealing renovation charges in common charge assessments is not incidental to the cause of action pleaded, but rather underpins it, because plaintiff alleges that the sponsor's principals fraudulently used common charges to pay for the building renovation and concealed their actions by disguising the payments as relating to maintenance and repairs. Thus, the cause of action is subject to a six-year limitations period.

Board of Mgrs. of the 443 Greenwich St. Condominium v. SGN 443 Greenwich St. Owner LLC, NY Slip Op 00450 (1st Dep't February 1, 2024)

Here is the decision.

Bicycle accidents.

A person riding a bicycle on a roadway is entitled to all the rights and bears all the responsibilities of a driver of a motor vehicle. A bicyclist is required to use reasonable care for his own safety, to keep a reasonably vigilant lookout for vehicles, and to avoid putting himself in a dangerous position. A motorist is required to keep a reasonably vigilant lookout for bicyclists, to sound the vehicle's horn when a reasonably prudent person would do so in order to warn a bicyclist of danger, and to operate the vehicle with reasonable care to avoid colliding with anyone on the road.

Amancio-Gonzalez v. Medina, NY Slip Op 00400 (2d Dep't January 31, 2024)

Here is the decision.

Appellate practice.

A trial court's ruling on a motion to vacate a note of issue is reviewed under an abuse of discretion standard.

Oldcastle Precast, Inc. v. Steiner Bldg. NYC, LLC, NY Slip Op 00459 (1st Dep't February 1, 2024)

Here is the decision.

Alter ego/veil piercing claims.

There is no independent cause of action for veil piercing.

245 E. 19 Realty LLC v. 245 E. 19th St. Parking LLC, NY Slip Op 00368 (1st Dep't January 30, 2024)

Here is the decision.

Summary judgment.

A plaintiff in a negligence action moving for summary judgment on the issue of liability must establish, prima facie, that the defendant breached a duty owed to the plaintiff, and that the defendant's negligence was a proximate cause of the alleged injuries.  A conclusory affidavit or an affidavit by an individual without personal knowledge of the facts does not establish the proponent's prima facie burden. 

Zeldin v. Larose, NY Slip Op 00336 (2d Dep't January 24, 2024)

Here is the decision.

Appelate practice.

An argument may properly be considered for the first time on appeal if it involves no new facts other than those that already appear on the record.

Vasquez v. Manhattan Coll., NY Slip Op 00365 (1st Dep't January 25, 2024)

Here is the decision.

Leave to renew.

A motion for leave to renew a prior motion must be based upon "new facts not offered on the prior motion that would change the prior determination," and "shall contain reasonable justification for the failure to present such facts on the prior motion," pursuant to CPLR § 2221[e].

Vasquez v. Manhattan Coll., NY Slip Op 00365 (1st Dep't January 25 2024)

Here is the decision.