Co-Ops—Cooperative Corporation Violated Proprietary Lease by Unreasonably Withholding Consent to Transfer an Apartment to a Deceased Shareholder’s Family Members—Business Judgment Rule Inapplicable—Proprietary Lease Imposed a “Heightened Standard of Reasonableness on the Board” Which Had Not Been Met—Co-Op Failed to Consider Joint Application as a Whole and Required Each Co-Applicant to Be Financially Qualified Even Though One Applicant Could Easily Afford the Expenses—Dissent Asserted That Co-Op Had Several Reasonable Bases For Rejection of Application
A trial court held that a defendant cooperative corporation’s (co-op) denial of the plaintiffs’ estate’s application (application) to transfer shares allocated to a cooperative apartment (apartment) and related proprietary lease (lease) from the plaintiff estate to the individual plaintiffs (sons), constituted a breach of the lease. The trial court directed the co-op to consent to the transfer. The Appellate Division (court) affirmed.
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