Condominiums—Unit Owners Sued Board For Failure To Maintain Adequate Fire Insurance—Board Didn’t Increase the Insurance Over a Five-Year Period—Board Asserted That It Carried Sufficient Insurance as Required by the Condominium Act and By-Laws, That Unit Owners Lack Standing, Board Acted In Good Faith, Relied Upon Its Professionals and the Complaint Is Barred by the ‘Business Judgment Rule’—Two Board Members Were Allegedly Motivated by Economic Self-Interest Since They Were Principals or Affiliates of The Condominium’s Sponsors Which Then Owned 18 Unsold Units and Were Responsible for 33.33 Percent of Common Expenses—Breach Of Fiduciary Duty Claim Against Other Board Members, Based On Their “Alleged Failure To…Inform Themselves of the Building’s...Insurance Needs and To Provide Unit Owners With Information About the Condominium’s Insurance Coverage....”—Board Consulted an Attorney and Insurance Broker in 2013, But No Evidence That Board Consulted With Anyone as to Adequacy of Insurance When the Insurance Was Renewed Five Years Later—Conflicting Conclusions By the Board Public Adjuster Experts Regarding Replacement Cost

Plaintiff condominium unit owners sued their condo (Board), claiming that there had been a “substantial fire” which “required removal of all occupants from their apartments” and the structure had been declared “unsafe for habitation by the City of New York.” They claimed that the board failed to “procure the proper amount of fire insurance for the condominium.”