The Un-Neighborly Cooperative

Ten intrepid homeowners in a residential cooperative complained about their board of directors. The board had discriminated against them. One of our clients came home to find an ax in his back door with the words “person must die” written in red paint. In addition, some of the board’s conduct was illegal or fraudulent. These practices exposed the board to liability for taxes or mortgage fraud. They had a choice to move out or stay and fight. They had the courage to fight. Therefore, we filed a complaint to dissolve the cooperative. Our opponents had a million dollar insurance policy for lawyer fees, so we were outspent five-to-one. However, after a hotly contested trial we proved the improper conduct of the cooperative, and it was ordered to be dissolved. Because of the dissolution, our clients got deeds to their property free and clear of the control of the cooperative.

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