Warshaw Burstein Wins Appeals to Terminate a Proprietary Lease for “Objectionable Conduct.”
02/02/2023Warshaw Burstein litigators Bruce H. Wiener, Slava Hazin and Nolan Mahoney won an appeal in the Appellate Division, First Department, whereby the Court unanimously affirmed the lower court’s decision granting summary judgment to terminate a proprietary lease for “objectionable conduct.” In Rivercross Tenants’ Corp. v. Kovach (Jan. 24, 2023), the First Department held that the cooperative board’s decision to terminate the lease for her objectionable conduct of constantly harassing her neighbors was protected by the “business judgment” rule. The Court found that the board acted within the scope of its authority and its determination to terminate the lease was made in compliance with the procedures set forth in the lease. In addition, the Court rejected the tenant-shareholder’s unfounded allegations that her tenancy was terminated in retaliation for her own complaints against her neighbors and alleged requests for disability accommodations. In sum, the Court found that defendant had failed to show any bad faith on the part of the board warranting a closer review of the board’s determination.
This decision affirmed a long-line of cases that authorizes cooperative boards to take legal action to have tenant-shareholders, who engage in “objectionable conduct,” ejected (evicted) from their apartment. The process is commonly referred to as a “Pullman” proceeding, named after the leading Court of Appeals’ decision in 40 West 67th Street Corp. v. Pullman, 100 NY2d 147 (2003).
