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The Meter is Running
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Wrestling with the extent the board is obligated to inform residents balanced against the privacy of a shareholder.
Boards must balance the interests of the many against the interests of the few and be proactive in confronting potential problems arising from undesirable occupants as soon as possible.
Belkin Burden Wenig & Goldman
Aaron Shmulewitz, Partner
A co-op board learned that a convicted sex offender (and son of a former board president) had moved into the building after being evicted at his former residence.
The board wrestled with the issues of the extent to which the board was obligated to inform the building’s other residents, balancing the interests of all other residents against the privacy interests of the individual and his father.
Ultimately, the board decided to make full disclosure to all other building residents. The sex offender moved out.
Legal Lesson
Boards must balance the interests of the many against the interests of the few. Boards must weigh the potential liability of not acting against the potential liability of acting. Boards must be proactive in confronting potential problems arising from undesirable occupants, as soon as possible after occupancy begins.
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