Court Rejects Business Judgment Rule Defense But Finds for Co-Op Board

BUFFALO - A New York appellate court held Feb. 2 that the business judgment rule did not apply to breach-of-contract claims brought by a homeowner against a cooperative townhouse association, but the court affirmed judgment for the association on other grounds. Anderson v. Nottingham Village Homeowner's Association Inc., No. 1639 CA 06-01084 (N.Y. Sup. App. Div., 4th Dept.).

The New York Appellate Division, 4th Department held that while the business judgment rule defense couldn't apply to breach of contract claims, those claims were barred by a maintenance agreement making the homeowner liable for repairs inside her home. The court also …