WHAT DOES IT mean when a co-op's proprietary lease or a
condo's bylaws state that "consent shall not be
unreasonably withheld"? Is the Business Judgment Rule standard
used? If not, what is the standard? These are the issues addressed
by the court in Perrault vs. Village Dunes Apt. Corp.
Philip Perrault owned a unit at the Village Dunes co-op in
Montauk on the eastern tip of Long Island, and he wanted to make
improvements to his apartment. The proprietary lease required that
he first receive the consent of the co-op board, which was not to
be "unreasonably" withheld. Certain of the proposed
renovations were disputed, including the removal of second-story
walls and ceilings, with the remaining wall to be supported by the
building's roof. In effect, the ceiling of the unit would be
the underside of the roof. Further, the space on the roof above the
current ceiling would be walled off from the common area, so that
the area would be accessible only by Perrault. The court