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Kleinman v. Point Seal Restoration Corp.

Appellate Division of the Supreme Court of New York, Second Department
Dec 27, 1999
267 A.D.2d 430 (N.Y. App. Div. 1999)

Opinion

Argued December 2, 1999

December 27, 1999

In two related actions, inter alia, to recover damages for injury to property, High Point of Hartsdale I Condominium, Arnold Feidelman, Andrew Schwartz, and Bernard Slotnick, defendants in Action No. 2, appeal from so much of an order of the Supreme Court, Westchester County (Fredman, J.), entered November 5, 1998, as denied their motion for summary judgment dismissing the complaint in Action No. 2 insofar as asserted against them.

Hofheimer Gartlir Gross, LLP, New York, N.Y. (Michael T. Rasnick and David L. Birch of counsel), for appellants.

Richard M. Gates, Garden City, N.Y. (Janet D. Cebula of counsel), for respondent.

LAWRENCE J. BRACKEN, J.P., DANIEL W. JOY, GLORIA GOLDSTEIN, ANITA R. FLORIO, JJ.


DECISION ORDER

ORDERED that the order is reversed insofar as appealed from, on the law, with costs, the motion is granted, the complaint in Action No. 2 is dismissed insofar as asserted against the appellants, and that action is severed against the remaining defendants.

The board of directors of the appellant High Point of Hartsdale I Condominium (hereinafter the Condominium) hired the defendant Point Seal Restoration Corp. to replace the roof of one of its buildings. The hiring is governed by the business judgment rule, which bars judicial review of the actions of a board of directors taken in good faith and in the exercise of corporate purposes (see, Matter of Levandusky v. One Fifth Ave. Apt. Corp., 75 N.Y.2d 530, 537-538; W.O.R.C. Realty Corp. v. Carr, 262 A.D.2d 310; Cooper v. 6 W. 20th St. Corp., 254 A.D.2d 110). After the board of directors made a prima facie showing that it acted within the scope of its authority under the bylaws of the Condominium and in good faith in deciding which contractor would perform the job, the plaintiff failed to submit evidence demonstrating the existence of an issue of fact regarding the alleged bad faith, willful misconduct, and self-dealing of the board of directors (see, Cooper v. 6 W. 20th St. Tenants Corp., supra). Accordingly, the appellants' motion is granted.

Bracken, J.P., Joy, Goldstein and Florio, JJ., concur.


Summaries of

Kleinman v. Point Seal Restoration Corp.

Appellate Division of the Supreme Court of New York, Second Department
Dec 27, 1999
267 A.D.2d 430 (N.Y. App. Div. 1999)
Case details for

Kleinman v. Point Seal Restoration Corp.

Case Details

Full title:PEARL KLEINMAN, et al., plaintiffs, v. POINT SEAL RESTORATION CORP., et…

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: Dec 27, 1999

Citations

267 A.D.2d 430 (N.Y. App. Div. 1999)
701 N.Y.S.2d 909

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