Case Notes by
Steven Wagner, Of Counsel, Adam Leitman Bailey
Category
- Access
- Alterations
- Appeals
- Arbitration
- Assessment
- Attorney Fees
- Attorney-Client
- Authority to Sue
- Balcony/Terrace Rights
- Bike Lane
- Board of Directors
- Books and Records
- Breach of Lease
- Business Judgment Rule
- Bylaws
- Bylaws/House Rules
- Certificate of Occupancy
- Charges/Fees
- Commercial Unit
- Common Element
- Common Elements
- Companion Animal
- Constitutionality
- Construction Defects
- Contracts
- Conversion
- Defamation
- Discovery
- Discrimination
- Due Diligence
- Easement
- Elections
- Estate
- Eviction
- Eviction/Termination
- Federal Courts Supplemental Jurisdiction
- Fiduciary Duty
- Fines
- Foreclosure
- Fraud
- Governance
- Gym
- House Rules
- Indemnification
- Indemnification/Subrogation
- Injunction
- Insurance
- Labor Law
- Liability of Directors
- Licenses
- Liens
- Maintenance
- Malpractice
- Management
- Mechanic's Lien
- Mediation
- Misrepresentations
- Motion Practice
- Motion Practive
- Negligence
- Notice of Pendency
- Nuisance
- Occupancy Agreement
- Ownership
- Parking
- Partnership
- Personal Injury
- Pets
- Property Damage
- Proprietary Lease
- Reasonableness
- Receivership
- Release
- Repairs
- Representations
- RPAPL 881
- Sales
- Service of Process
- Sponsor
- Statute of Limitations
- Stock/Shares
- Stocks/Shares
- Sublets
- Succession Rights
- Tax
- Third-Party Liability
- Transfers
- Trespassing
- Trial Practice
- Violations
- Warranty of Habitability
- Yellowstone Injunction
- Zoning
First published: Oct 2025
No Unit — No Seat — No CaseTAKEAWAY Allegations of bad faith or breach of fiduciary duty require real evidence, not just dissatisfaction with a board’s actions. Courts are generally reluctant to interfere with decisions made within a board’s authority and in good faith, and the business judgment rule protects boards from having their decisions second-guessed so long as those decisions are rational, honest and serve a legitimate purpose for the building. This case underscores that a board’s careful adherence to its governing documents - coupled with professional advice from attorneys or other experts - provides a strong defense against legal challenges. For unit owners considering litigation, it’s important to remember that courts will defer to a board’s discretion unless there is proof of fraud, self-dealing, or other misconduct. And in this case Zihenni and his LLC had had no proof that the board acted in bad faith or beyond its authority.
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