Archive for August 12th, 2013

August 12, 2013

DiLorenzo Article on Co-op Board Liability in NY Real Property Law Journal

Professor Vincent DiLorenzo published Individual Liability of Board Members after Fletcher v. The Dakota, N.Y. Real Property Law Journal, winter 2013 at 20.  Here’s the abstract:

In Fletcher v. The Dakota, 948 N.Y.S. 2d 263, 2012 WL 2532149 (1st Dep’t 2012), the First Department reconsidered when board members of cooperative corporations will be individually liable for discriminatory conduct on the part of the board. The court in Fletcher concluded it had misinterpreted the governing case law in its earlier decision in the Pelton case.  It rejected the independent tortious act requirement the courts had earlier imposed and ruled that “participation” of an individual director in a corporation’s tort is sufficient to give rise to individual liability. This article explores whether the Fletcher court’s interpretation and application of the case law is correct, and what precise involvement triggers individual liability for board members after the Fletcher decision.

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