Narrative Opinion Summary
The Supreme Court of New York County, under Justice Beatrice Shainswit, issued an order on September 30, 1997, subsequently entered as a judgment on October 14, 1997. The court denied and dismissed a petition filed under CPLR article 78, which challenged the respondent's denial of the petitioner's request to amend her cooperative corporation stock certificate and proprietary lease to include her son's name. The court affirmed the decision unanimously, ruling that the business judgment rule prohibits judicial review of the rationale behind House Rule 43, which governs the transferability of cooperative corporation stock shares. The court held that when a board acts within its authority and in good faith for the cooperative's benefit, courts will not intervene or substitute their judgment for that of the board, referencing the precedent set in Matter of Levandusky v One Fifth Ave. Corp. 75 NY2d 530, 538. The ruling was concurred by Justices Ellerin, Nardelli, Wallach, and Rubin.
Legal Issues Addressed
Board Authority and Good Faithsubscribe to see similar legal issues
Application: The court determined that as long as the board acts within its authority and in good faith for the cooperative's benefit, judicial intervention is not warranted.
Reasoning: The court held that when a board acts within its authority and in good faith for the cooperative's benefit, courts will not intervene or substitute their judgment for that of the board, referencing the precedent set in Matter of Levandusky v One Fifth Ave. Corp. 75 NY2d 530, 538.
Business Judgment Rulesubscribe to see similar legal issues
Application: The court applied the business judgment rule to deny the petitioner's request, emphasizing that judicial review is not permitted over the rationale behind decisions made under House Rule 43 regarding the transferability of cooperative shares.
Reasoning: The court affirmed the decision unanimously, ruling that the business judgment rule prohibits judicial review of the rationale behind House Rule 43, which governs the transferability of cooperative corporation stock shares.
CPLR Article 78 Proceedingssubscribe to see similar legal issues
Application: The petition filed under CPLR article 78 was denied and dismissed, as the court found no grounds to challenge the board's decision within the scope of this proceeding.
Reasoning: The Supreme Court of New York County, under Justice Beatrice Shainswit, issued an order on September 30, 1997, subsequently entered as a judgment on October 14, 1997. The court denied and dismissed a petition filed under CPLR article 78, which challenged the respondent's denial of the petitioner's request to amend her cooperative corporation stock certificate and proprietary lease to include her son's name.