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Co-ops and Condominiums
Count Invokes Business Judgment Rule to Uphold Fines Imposed By Co-Op Board
Board of Managers of the Kings Oak Terrace Cooperative Apartments, Inc. v. Khovan
2024 WL 4498339
AppDiv, Second Dept.
(memorandum opinion)
In a co-op board’s action to enforce fines against two shareholders, the shareholders appealed from Supreme Court’s grant of summary judgment to the board. The Appellate Division affirmed, holding that the business judgment rule required the courts to defer to the board’s determination.
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