13315 Owners Corp. v. Kennedy, 4 Misc. 3d 931 (2004)

Citation: 13315 Owners Corp. v. Kennedy, 4 Misc. 3d 931 (2004)
Parent Document: 13315 Owners Corp. v. Kennedy, 4 Misc. 3d 931 (2004)
Jurisdiction: New York (state)
Effective Date: 2004-06-29
Original Source: https://www.courtlistener.com/opinion/6305035/13315-owners-corp-v-kennedy/ ↗

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Considerations about the benefits and risks of Pullman when applied to a shareholder vote or a board vote have influenced other courts. In Woodrow Ct., Inc. v Levine (NYLJ, Nov. 15, 2002, at 22, col 4 [Hous Part, Civ Ct, NY County]), Civil Court held that Pullman is inapplicable in a summary holdover proceeding when the decision to terminate a shareholder-tenant’s proprietary lease due to objectionable conduct derives solely on a vote of the cooperative’s seven-member board of directors. When Woodrow was decided, the Appellate Division had already applied the business judgment rule in Pullman, although the Court of Appeals had yet to affirm that decision. (See Pullman, 296 AD2d at 124.) The court in Woodrow found that the facts of Pullman were distinguishable from the facts of *943Woodrow. In Woodrow, like here, the shareholders held no meeting or vote on the respondent’s tenancy. In Woodrow, moreover, the respondents never had an opportunity to defend themselves at the board of directors meeting. These differences distinguished Pullman from Woodrow. (See NYLJ, Nov. 15, 2002, at 22, col 4; accord Feld v 710 Park Ave. Corp., 2002 NY Slip Op 50594[U], *5 [Sup Ct, NY County 2002] [stressing that shareholders made decision to evict in Pullman, but in Feld board’s decision to amend bylaws withdrew from shareholders any right to vote for whom they wished to sit on board].)

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