This co-op board appears to be in trouble and without a good basis to justify its withdrawal of its approval of the purchase applications. This is a case where sound legal counsel before the board withdrew its approval might have led to a different result and less liability exposure for the board members involved.
Read full articleThe case is not the last word on this matter and the results may change after discovery is permitted. However, it illustrates the plight of individual board members in considering apartment transfer applications. Without good legal advice, it is not difficult to run afoul of statutory prohibitions on discrimination against protected classes of individuals.
Read full articleThis is the latest illustration of what a co-op board can face when it rejects an apartment purchaser who is a member of a protected class, who then claims that such rejection was based on improper discrimination. In this case, where the board set forth permissible grounds to justify the rejection, the court was unwilling to accept such grounds to dismiss the discrimination claim. Instead, the court ordered pretrial discovery to afford the plaintiffs an opportunity to refute the co-op's position. Thus, the claim remains and the co-op is forced to incur further defense costs.
Read full articleAlthough this case did not reach a final determination, the court allowed a claim for age discrimination to proceed against a co-op. The case illustrates that age discrimination, which is protected by both city and state laws, if proven, is just as invidious as racial, religious, or sexual discrimination. Here, the plaintiff still had to convince either a judge or a jury that the two rejections were based on age discrimination.
Read full article