Condominiums—Right of First Refusal (ROFR)—Board May Exercise ROFR and Assign Right to Purchase to a Third Party—Business Judgment Rule

A DEFENDANT OWNER (owner) of a condominium unit (unit) objected to the purchase of its unit by a nonparty (“A”), whose principal (“B”), is the owner’s neighbor. The owner had entered into a contract to sell the unit to a third party (“C”), subject to the plaintiff condominium board’s (board) right of first refusal (ROFR). The board exercised its ROFR and assigned that right to “A,” as its designee to purchase the unit. “B’s” wife, was a member of the board. The board had moved for summary judgment and submitted evidence that “B’s” wife did not participate in the board’s deliberations or discussions regarding the designation of the third-party purchaser “A.” As part of the purchase, “B” had agreed to pay the board “approximately $400,000 to license the hallway between his unit and [owner's] unit.”

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