A petitioner cooperative housing corporation (co-op) commenced an “objectionable conduct holdover proceeding” to recover possession of the respondent shareholder’s co-op apartment. The apartment was “exempt from rent control and rent stabilization pursuant to General Business Law §352-eeee.” The co-op alleged that “after approximately 20 years of objectionable conduct, and repeated written notices, the board of Directors held a special meeting to discuss whether respondent’s tenancy should be terminated for objectionable conduct pursuant to…respondent’s proprietary lease.” Following deliberations, the shareholder’s proprietary lease (lease) was terminated by a unanimous vote of the board of directors (board). The shareholder refused to vacate the apartment and the co-op commenced the subject summary holdover proceeding. The co-op moved for summary judgment seeking a final judgment of possession, dismissal of the shareholder’s defenses and counterclaims, jury demand and for attorney fees.

The co-op alleged that it acted “within its authority and in good faith” in terminating the shareholder’s tenancy and that the court should “defer to the board vote and issue a warrant of eviction….” The shareholder opposed the co-op’s motion and cross moved for summary judgment. The shareholder argued that the co-op had acted “outside the scope of its authority by not precisely following the procedure prescribed by the co-op for sending notices,” acted in “bad faith by deliberating ‘off the record’ at the special meeting,” had failed to state “the factual basis in support of its decision to terminate respondent’s tenancy based on objectionable conduct” and that the notice of termination failed to state a cause of action because it was “factually deficient.” The shareholder also sought attorney fees and costs.

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