Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Commercial Leasing Law & StrategyKickerFeaturesSectionsNewsLJN Newsletters

<i>Levandusky</i> After 25 Years

By Richard Siegler and Eva Talel
February 29, 2016

For over 25 years, the Court of Appeals' decision in Levandusky v. One Fifth Avenue Apartment Corp., 75 N.Y.2d 530 (1990) (affirmed in 40 West 67th Street v. Pullman, 100 N.Y.2d 147 (2003)), has stood for the proposition that the actions of condominium and co-op boards are entitled to judicial deference when made in the proper exercise of their business judgment. Levandusky held that discretionary board actions are subject to such deference unless the apartment or commercial unit owner who is challenging the board's action can show that the board acted in bad faith, outside of its authority or not in furtherance of the condominium or co-op's legitimate interests. This deference has been a powerful tool for boards, one that benefits the entities they serve and the overwhelming majority of apartment owners, and avoids the expense and disruption of litigation by encouraging summary dismissal of unwarranted claims.

This article updates our prior ones that dealt with Levandusky and its progeny. See, e.g., Siegler and Talel, “Business Judgment Rule: Board Protection Continues,” N.Y.L.J. , May 6, 2009, at 3, col. 1; Siegler and Talel, “'Levandusky' and Unprecedented Board Influence,” N.Y.L.J., Sept. 5, 2007, at 3, col. 1 and “'Levandusky' at 21: Board Protection Continues,” N.Y.L.J., May 4, 2011, at 3, col. 1. Herein, we review 13 recent cases, dating from 2011 through 2015, that invoked the business judgment rule. The cases discussed below show that Levandusky is still widely applied to give deference to a broad range of board actions.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office Image

A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.

Bit Parts Image

Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights

Risks of “Baseball Arbitration” in Resolving Real Estate Disputes Image

“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.

Disconnect Between In-House and Outside Counsel Image

'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.