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Badowski v. Roosevelt Terrace Coop., Inc.

Appellate Division of the Supreme Court of New York, Second Department
Mar 6, 1989
148 A.D.2d 406 (N.Y. App. Div. 1989)

Opinion

March 6, 1989

Appeal from the Supreme Court, Queens County (Leviss, J).


Ordered that the order is affirmed insofar as appealed from, with costs.

The plaintiff is the executrix of the estate of Alfred Weissmann. Weissmann was the owner of 89 shares of stock in the defendant, Roosevelt Terrace Cooperative, Inc., and was given the right of occupancy to apartment 9A, at the premises located at 35-50 85th Street, Jackson Heights, New York. Upon Weissmann's death, the plaintiff informed the defendant corporation of her intent to sell the premises. Although pursuant to its bylaws, the corporation had an option to purchase the premises at book value, it notified the plaintiff that it would waive this option in consideration of the plaintiff transferring to it 25% of the difference between the purchase and the sale price. The plaintiff thereafter signed a document in which she agreed to pay the aforementioned waiver of option fee. After paying the fee, the plaintiff initiated this action seeking to recover it asserting that the defendant corporation did not have the authority to impose such a fee.

It is well settled that the imposition of a waiver of option fee upon outgoing shareholders who wish to sell their shares on the open market, rather than resell them to the cooperative corporation at book value, is a valid exercise of a cooperative board's power as granted by statute and the corporate bylaws, and as interpreted by case law (Meichsner v. Valentine Gardens Coop., 137 A.D.2d 797; Jamil v. Southridge Coop., 102 Misc.2d 404, affd 77 A.D.2d 822, cert denied, 450 U.S. 919, reh denied 450 U.S. 1050; Pomerantz v. Clearview Gardens First Through Sixth Corps., 77 A.D.2d 651; Business Corporation Law § 701).

In light of the foregoing authority, together with the fact that the plaintiff has not pointed to any facts which demonstrate that the defendant corporation acted in excess of its authority, we find that summary judgment was properly granted in favor of the defendant. Mollen, P.J., Thompson, Bracken and Kunzeman, JJ., concur.


Summaries of

Badowski v. Roosevelt Terrace Coop., Inc.

Appellate Division of the Supreme Court of New York, Second Department
Mar 6, 1989
148 A.D.2d 406 (N.Y. App. Div. 1989)
Case details for

Badowski v. Roosevelt Terrace Coop., Inc.

Case Details

Full title:PATRICIA BADOWSKI, as Executrix of ALFRED WEISSMANN, Deceased, Appellant…

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: Mar 6, 1989

Citations

148 A.D.2d 406 (N.Y. App. Div. 1989)
538 N.Y.S.2d 562

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