The objectionable and undesirable characteristics of Lapidus appear self-evident. His dispute with the co-op has become a cause celebre in the co-op legal community. Here, the co-op properly followed the Court of Appeals-mandated requirements under both the seminal Levandusky case and its Pullman progeny, leaving the court little choice but to approve the co-op’s termination of the Lapidus tenancy for objectionable conduct. Increasingly, Pullman should be seen as a real wake-up call for any co-op shareholder who acts in an outrageous anti-social manner.
Read full articleThe court’s great caution in adhering to the Pullman doctrine is apparent throughout this carefully decided case. Here, the lease termination was the result of board action without a shareholder vote unlike the case in Pullman, which involved shareholder action. Since the court expresses concern about arbitrary action by a few shareholders who also happen to be board members, when there is evidence of some irregularity in the actions taken by the board to evict Kennedy, the court concludes that it, not the board, must determine if the actions complained of by the board constituted objectionable conduct. This result is presumably the way a court would have acted before Pullman. Several further decisions can be anticipated as New York courts try to flesh out the parameters of the Pullman decision.
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