Tracy Peterson Obtains Dismissal of Breach of Fiduciary Duty Claims on Appeal
The sole commercial unit owner in an otherwise residential condominium building brought an action against the condominium, its board of managers and the individual members of the board, seeking review of the condominium's governing documents with regard to the permitted uses of the commercial unit. The lower court had granted the defendants' motion to dismiss the complaint to the extent of dismissing all the individual board members from the case and also dismissing the "derivative" claim and the claim for tortious interference as well as striking the plea for punitive damages.
On appeal, the foregoing determination was affirmed. In addition, the First Department reversed that portion of the lower court's decision denying the motion to dismiss the two breach of fiduciary duty claims as well as the cause of action seeking a declaratory judgment that the plaintiff commercial unit owner may use the commercial unit for any purpose permitted under applicable zoning regulations.