Litigation Team Successfully Defended Luxury Condo Building in Support of Business Judgment Rule

Romer Debbas, LLP recently obtained a tremendous decision for a downtown luxury condominium building where the firm represents the board, in which a unit owner’s Article 78 Petition was denied due to the Business Judgment Rule. An Article 78 Petition can be brought in order to challenge the determinations of administrative agencies, public bodies or officers. Our firm’s experienced co-op and condo practice group represents several condominium boards throughout the city and frequently handles litigation cases involving challenges to their decision-making authority. In a thirteen page decision, the Supreme Court of the State of New York held that the Board’s denial of Petitioner’s alteration application for an impermissible combination of a residential and commercial unit was a decision made within its authority, and the decision was protected by the Business Judgment Rule and thus not subject to judicial interference. The Court further held that there had been no finding that the Board failed to comply with the terms of the Governing Documents. Through the hard work of the firm’s co-op and condo practice group, the petition for relief was denied in its entirety and the petition was dismissed. This case was handled by partner Emil A. Samman, Esq. and associate Jason A. Goodman, Esq.