Limiting the Autonomy of Cooperative Apartment Corporation Governing Boards

Authors

John L. Barone

Abstract

The article argues that proposed legislation requiring cooperative apartment corporation governing boards to provide written explanations for rejecting applicants undermines the business judgment rule, which protects boards' autonomy as long as they act in good faith. This rule, supported by cases like Levandusky v. One Fifth Avenue Apartment Corp. and Weisner v. 791 Park Avenue Corp., shields boards from liability unless bad faith or discrimination is shown. The article contends that the legislation would erode this protection, potentially leading to increased litigation and weaker governance.

Disciplines

Civil Rights and Discrimination | Contracts | Housing Law | Law

Recommended Citation

John L. Barone, Limiting the Autonomy of Cooperative Apartment Corporation Governing Boards, 2 Cardozo Pub. L. Pol’y & Ethics J. 179 (2004).
Available at: https://larc.cardozo.yu.edu/cplpej/vol2/iss2/2