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September 2015


A co-op board decided to auction off common area space to the highest bidder.  When the bids came in, the board decided to have shareholders bid again.   When those bids were received, the co-op re-evaluated, and decided the co-op was better served if the board rented the space, as it had been doing.  When the board announced that it would not sell, did the bidding shareholders have a cause of action?  Did the answer change if one of the renters was a board member?  What if plaintiffs alleged they had an acrimonious relationship with the board?  These were the issues addressed by the court in Newman v. 911 Alwyn Owners Corp.