Case Notes in Easement

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First published: Feb 2026

TAKEAWAY This case demonstrates that once a board conveys important amenities to a tenant that are maintained for years, an attempt to later claw them back through a change to the house rules risks a lawsuit. The appellate court’s decision shows that if there is evidence that the rule change may have targeted and discriminated against a particular tenant or group of tenants, a court may hold that the business judgement rule does not apply to allow for a quick summary dismissal, leaving the board to face the bad publicity, acrimony, time demands, and costs of ongoing litigation. Still, the appellate court’s decision to let stand the trial court dismissals of counts relating to the freight elevator rule changes, notwithstanding their sweeping nature and seemingly adverse business implications for commercial tenants in a heavily commercial building, demonstrate that the business judgment rule’s protections are still quite substantial. It is also helpful, as occurred here, for a board to pass a more general rule that clarifies and provides notice regarding its powers prior to taking action on particular amenities through a house rule.

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Case Notes in

Easement

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First published: Feb 2026