Jones v. O'Connell

Harbor House (defendant) was a cooperative apartment building where unit sales required shareholder consent. Jones (plaintiff), an existing Harbor House shareholder, contracted with McNulty (plaintiff) to buy McNulty's unit — located directly beneath his own — intending to use it as extra space for his growing family. Harbor House disapproved the sale because of Jones's intended combined use of both units, and Jones and McNulty sued for an injunction, arguing Harbor House unreasonably withheld consent. The trial court found Harbor House acted reasonably and in good faith, and the plaintiffs appealed.