40 West 67th Street Corp. v. Pullman

Pullman (defendant) bought shares in a cooperative apartment building and moved in under a proprietary lease. He engaged in disruptive conduct-baseless complaints, a physical altercation, derogatory flyers, unauthorized alterations, and repeated lawsuits against neighbors. The cooperative board (plaintiff) held a meeting and voted that his conduct was objectionable, then sued for possession, ejectment, and cancellation of his stock when he refused to leave.

Whether the business-judgment rule governs a residential cooperative's decision to evict a shareholder-tenant, precluding ordinary judicial review of the decision.