Co-ops and Condominiums

In an action by condominium unit owners to inspect the condominium's books and records, to declare an election void, and to declare that parking fees must be set by a vote of the unit owners, both parties appealed from Supreme Court's order, which denied the board's motion to dismiss the claims for inspecting books are records and invalidating the election, and granted dismissal of the claim with respect to parking fees. The Appellate Division affirmed, holding that factual disputes precluded dismissal of the first two claims, but agreeing with Supreme Court that the business judgment rule protected the board's determination setting parking fees.

Unit owners contended that the 2017 election for the board of managers was void because procedures in the bylaws were not followed and no quorum was established. The board presented redacted ballots as documentary evidence establishing the validity of the election. Unit owners also contended that the board had set parking fees at an impermissibly low rate because all but one of the board members had parking spaces, while more than 300 unit owners did not have parking spaces. Supreme Court concluded that issues of fact precluded summary judgment on the election claim, but dismissed the parking claim. The court also held that unit owners' claim to inspect books and records raised factual disputes about whether unit owners had a proper purpose for reviewing the books and records. Both parties appealed.