Levandusky v. One Fifth Ave. Apt. Corp

In Levandusky v. One Fifth Ave. Apt. Corp. 75 N.Y.2d 530,538 the Court of Appeals held that: The board owes its duty of loyalty to the cooperative--that is, it must act for the benefit of the residents collectively. So long as the board acts for the purposes of the cooperative, within the scope of its authority and in good faith, courts will not substitute their judgment for the board's. Stated somewhat differently, unless a resident challenging the board's action is able to demonstrate a breach of this duty, judicial review is not available. The business judgment rule is not an insuperable barrier, however, and "permits review of improper decisions, as when the challenger demonstrates that the board's action ... deliberately singles out individuals for harmful treatment." (Id. at 540.)