Realty Law Digest

Co-Ops — Sellers Rented Apartment Before Board Approved the Pending Sale of Their Co-Op and Board Rejected the Sale — Sellers Sued — Individual Board Members Had No Personal Liability— NYS Human Rights Law — Federal Fair Housing Act— Breach of Fiduciary Duty — Prima Facie Tort — Tortious Interference With Contract — Breach of Contract — Business Judgment Rule.

This case involved a claim for money damages arising from a dispute involving a cooperative corporation’s (co-op) failure to “consent to a proposed sale [of the plaintiffs'] cooperative apartment [apartment].” The husband and wife plaintiffs owned the apartment. The plaintiffs sued the co-op and each member of the co-op’s Board of Directors (board). The plaintiffs asserted claims under the New York State Human Rights Law (NYSHRL) and the Fair Housing Act (FHA), as well as claims for breach of fiduciary duty, prima facie tort, tortious interference with contract and breach of contract. The defendants moved to dismiss, arguing that the plaintiffs lacked standing and had failed to state a cause of action.