Objectionable Conduct

London Terrace Towers v. Michael Davis

The board of this West Side co-op sued to evict Michael Davis, a shareholder, complaining that Davis engaged in objectionable conduct throughout his tenancy. He was warned several times and was asked to follow the house rules. He even signed an agreement promising to improve his behavior. after many more incidents, the board unanimously voted to terminate his proprietary lease.

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"Disruptive shareholders can change the dynamic of an entire cooperative building. When you have a shareholder who is harassing other residents and creating fire hazards, that can take the board’s focus away from operating the building. But co-ops are not without remedies. Proprietary leases, almost without exception, have objectionable-conduct clauses, which allow either boards or boards with the assistance of a shareholder vote to remove these problematic shareholders. However, in order to successfully do this, boards have to follow all of the process provided in the proprietary lease. They need to provide due process, they need to provide reasoned judgment, and they need to act in good faith."

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