Co-Ops—Board Allegedly Rejected Sale of Shareholder’s Apartment Because the Price Was Too Low—However, Board Had Allegedly Offered Less Money to Purchase the Apartment for Use as a Gym—Business Judgment Rule—Issues of Fact as to Claims for Breach of Fiduciary Duty and Breach of Contract Based on Board’s Alleged Bad Faith and/or Self-Dealing in Not Approving the Sale of the Apartment, Warrant Denial of Board’s Motion For Summary Judgment
The plaintiff is a shareholder in a cooperative corporation (co-op). The plaintiff had applied to purchase another apartment within the building. The defendant co-op board (board) had expressed to the plaintiff, an interest in purchasing the apartment that the plaintiff currently owned, in order to create a gym for the co-op. After not hearing from the co-op’s managing agent (agent), as to whether or not the board intended to pursue the purchase of the plaintiff’s apartment, the plaintiff retained a real estate broker and listed her apartment for $499,000. The plaintiff alleged that, on behalf of the board, an individual board member offered the plaintiff $400,000 for her apartment. The plaintiff declined the offer since it was below the market value for the apartment.
