New York Court of Appeals
40 West 67th Street, Respondent v. David Pullman, Appellant
May 13, 2003100 N.Y.2d 147
Summary
The New York Court of Appeals affirmed the Appellate Division, holding that the business judgment rule is the proper standard of review for a cooperative board's decision to terminate a shareholder-tenant's lease based on objectionable conduct. The court found that RPAPL 711's competent‑evidence requirement is satisfied by applying the business judgment rule, and that judicial scrutiny is warranted only if the board acted outside its authority, failed to further the cooperative's purpose, or acted in bad faith.