DeGall v. 201 West 21st Street Tenants Corp.

Full title: ALFRED A. DeGALL, Appellant, v. 201 WEST 21ST STREET TENANTS CORP. et al.…

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

Date published: Jun 25, 1998

251 A.D.2d 238 (N.Y. App. Div. 1998)

673 N.Y.S.2d 316

Opinion

June 25, 1998

Appeal from the Supreme Court, New York County (Richard Lowe, III, J.).

Plaintiff, a tenant/shareholder in defendant cooperative corporation, commenced this action against the cooperative and its managing agent to recover damages allegedly attributable to the refusal of the cooperative's board of directors to approve a proposed sublet. Plaintiff's proprietary lease, however, accords the cooperative's board the right to deny consent to a proposed sublet "for any reason or no reason". Absent proof of a breach of fiduciary responsibility to the cooperative corporation, the business judgment rule prohibits judicial inquiry into the reasonableness of the actions of the corporate directors (see, Matter of Levandusky v. One Fifth Ave. Apt. Corp., 75 N.Y.2d 530, 536-542).

Concur — Milonas, J. P., Ellerin, Nardelli, Rubin and Andrias, JJ.