Case Notes in
Elections
Category
- Access
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- Trespassing
- Trial Practice
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- Warranty of Habitability
- Yellowstone Injunction
- Zoning
First published: Feb 2024
You Don’t Have The Votes!TAKEAWAY This case is a reminder that co-ops and condominiums are ultimately political organizations controlled by the majority interest of their owners. Particularly in small buildings, where just a few owners can constitute a majority, the majority owners have a substantial ability to control the building’s leadership and operations. Unless there are protections for minority interests in the bylaws or other governing documents, minority owners may be frozen out by a coalition holding a majority. Additionally, lawyers can be focused on bringing claims based on procedural issues in providing notice of and conducting meetings. However, this case points out that if the procedural issues can be shown not to make a difference in the ultimate result, courts can properly ignore them.
Read full articleFirst published: Nov 2023
The Vote Must Be WrongTAKEAWAY If a board member feels that an election is questionable, he or she would be wise to make sure there are enough facts to back up the claim. It appears that in this case the former board president may have been so aggrieved that she didn’t obtain the board position she wanted that she was willing to spend her time and money, and that of the co-op’s also, to challenge the election outcome without the necessary proof. Unfortunately, lawsuits such as this tend to affect the collegiality of any board, and while it’s unclear why, the decision in this case points out that the president of this board has already resigned.
Read full articleFirst published: Oct 2022
You say toMAHto. I say toMAYto. The bylaws say….Voter participation matters. When it comes to board elections, an informal practice, no matter how long-standing, or widely accepted, is not controlling authority. At the end of the day, the express language of the governing documents will determine permissible board election procedure. In this case, the common interest among residential unit owners was over 70% and the sponsor’s interest was less than 30%. However, due to the residents’ reliance on past, informal voting procedures, and a lack of participation by all residential unit owners in the formal election, the sponsor’s votes, while not controlling, ultimately became determinative.
Read full articleFirst published: Sep 2022
I Am Who I Say I AmThis is one of the first cases, if not the first, interpreting the language now codified in the recently enacted NPCL and BCL amendments allowing for board elections to have electronic voting, including voting by email and other electronic means. If this case is any indication of future decisions (and it is my bet that it is), courts will uphold board discretion as to the implementation of safeguards in electronic voting. Boards will likely have broad discretion in enacting safeguards in electronic voting. While boards should enact safeguards, they should be mindful of ensuring that the burdens do not prohibit voting by certain segments of shareholders.
Read full articleFirst published: Sep 2022
Lifesavers Bldg. Homeowners Group v. Bd. of Mgrs. of the Landmark CondoTAKEAWAY This is one of the first cases, if not the first, interpreting the language now codified in the recently enacted NPCL and BCL amendments allowing for board elections to have electronic voting, including voting by email and other electronic means. If this case is any indication of future decisions (and it is my bet that it is), courts will uphold board discretion as to the implementation of safeguards in electronic voting. Boards will likely have broad discretion in enacting safeguards in electronic voting. While boards should enact safeguards, they should be mindful of ensuring that the burdens do not prohibit voting by certain segments of shareholders.
Read full articleFirst published: Aug 2022
Brooklyn Board BrouhahaFor shareholders who are disgruntled with the current board and want a new election, there are mechanisms for doing so. But if it’s not according to your co-op’s bylaws or New York’s Business Corporation Law, be warned. A court of law will not recognize the election, you will have spent an enormous amount of time (and potentially legal fees), and the old board will remain in place.
Read full articleFirst published: Aug 2022
Wyche v. Haywood-DiazTAKEAWAY For shareholders who are disgruntled with the current board and want a new election, there are mechanisms for doing so. But if it’s not according to your co-op’s bylaws or New York’s Business Corporation Law, be warned. A court of law will not recognize the election, you will have spent an enormous amount of time (and potentially legal fees), and the old board will remain in place.
Read full articleFirst published: Jun 2022
Roberts v. WVH Housing CorporationThese disputes happen all too often at cooperative and condominium elections. It would seem that the reason for this is the rush to close the meeting and announce the results the same evening. It is not uncommon for a board to insist that the vote be finalized the night of the meeting, no matter how late it gets. This is asking for trouble, since people often make mistakes. In many cases, if there was a simple comparison of the number of shareholders who signed in (either by proxy or in person) and the number of ballots, discrepancies might be discovered. In the lumberyard, it is common to hear “measure twice, cut once.” Perhaps an adage should be created just for elections at cooperatives and condominiums: Check twice, announce once.
Read full articleFirst published: Feb 2022
Getting on the BoardThis is a good example of the need to comply with a building’s governing documents when determining whether an election was properly held.
Read full articleFirst published: Oct 2021
Siwana Green v. Al CristanchoOften we hear that a court’s decision is based on a technicality and that form is as important as substance. In this decision, the court has made it clear that the will of the people will prevail, even if there may have been a technical mistake or two. Substance, in this case, was more important than form.
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