First published: Feb 2022
Washing Machine
Boards should consult their governing documents and ensure sufficient notice is given, and even add a day or two as a cushion. Courts will not dismiss a case if too much notice is given instead of not enough. Boards should also make every effort to resolve disputes with their shareholders so that harmonious and mutually beneficial relationships cay be maintained.
BENAVIDES V. 322 WEST 47 STREET HOUSING DEV. FUND CORP.
WHAT HAPPENED The shareholder’s alleged unauthorized installation of a washing machine constituted a lease violation, but the cooperative corporation failed to follow its own notice procedures in issuing the notices to the shareholder. The court had no choice but to grant the shareholder’s order to show cause and prevent the cooperative from terminating or canceling her lease. The court noted that, due to the parties’ long-standing acrimonious relationship involving prior and repeated lease defaults, additional litigation will likely ensue should the parties not be able to set aside their differences and reach an amicable resolution.
