Tracy Peterson Successfully Defends Against Appellate Challenge to Cooperative House Rules
Tracy Peterson successfully defended against the appeal of a decision rendered in the Supreme Court of the State of New York, New York County, determining that a cooperative shareholder’s challenge to house rules enacted by the cooperative’s board of directors was timed-barred. The shareholder waited over a year to legally challenge house rules addressing the use of roof space outside of the shareholder’s apartment, running afoul of the applicable four-month statute of limitations. The appellate court similarly rejected the shareholder’s attempt to re-package his claim as one for breach of the cooperative’s proprietary lease. Rather, the appellate court reiterated the rule that when a cooperative shareholder seeks to challenge a cooperative board’s actions, such challenge must be made in the form of an Article 78 proceeding, commenced within four months after the challenged decision becomes final and binding.