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ARTICLE · 06 DECEMBER 2018

Wrestling Over What's "Reasonable"

WHAT DOES IT mean when a co-op's proprietary lease or a condo's bylaws state that "consent shall not be unreasonably withheld"?

United StatesReal Estate and Construction

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

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