This proceeding pursuant to CPLR article 78 is just the most recent phase in an extended dispute between petitioner Ronald Levandusky, the proprietary lessee of apartment 26B in a twenty-seven story residential building located in the Greenwich Village Historical District, and respondent One Fifth Avenue Apartment Corp., the cooperative corporation. Petitioner, who at the time was president of the Board of Directors, sought permission to perform certain alterations to his apartment. Although the Board approved the proposed renovations, the plans submitted by petitioner did not include any change in the location of a steam pipe or riser in the kitchen area or certain air conditioner installations. Moreover, in an action characterized by respondent as a clear conflict of interest, petitioner personally executed an application, as both lessee and president of the Board, to the Landmarks Preservation Commission for authorization to proceed. Thereafter, the Commission agreed to allow the alterations only if they complied with specified conditions. However, after petitioner had commenced the work, respondent served him with a stop work order in August of 1988 due to his moving of the steam riser, and he instituted his first article 78 proceeding. The matter ultimately reached the Court of Appeals, which, in a detailed opinion (Matter of Levandusky v One Fifth Ave. Apt. Corp., 75 N.Y.2d 530, 537), held that the discretionary determinations of a cooperative or condominium board must be governed "by a standard of review that is analogous to the business judgment rule applied by courts to determine challenges to decisions made by corporate directors". According to the court therein (supra, at 537-538):
Appellate Division of the Supreme Court of New York, First Department. (26 Mar, 1991)
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