Tracy Peterson Obtains Partial Dismissal of Lawsuit Challenging Co-op’s House Rules

Tracy Peterson obtained partial summary judgment dismissing much of a lawsuit brought by a shareholder-lessee of a cooperative penthouse apartment challenging House Rules enacted by the co-op’s board of directors concerning roof “terrace” space, which rules affect only the owners of the co-op’s two penthouse apartments.  The court held that the challenge to the rules was time-barred, having been asserted beyond the 4-month statute of limitations applicable to Article 78 proceedings.  The court also dismissed the fraud and breach of fiduciary duty claims asserted against prior and current board members, the breach of contract claim asserted against the co-op’s property manager and nearly all of the declaratory relief sought against the co-op.

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