Thinking of joining your Manhattan co-op board? Read this first.

In the late 90’s there was a court case involving two lawyers who tried to sublet an apartment on the East side. When their application was rejected, they brought a lawsuit and eventually, individual board members were held liable. One was held liable for over $100k personally! That was an eye opener for co-op boards who previously thought they could not be held personally liable for rejecting a potential candidate. If you are thinking of running for your co-op board make sure that your building has D & O insurance ┬áto cover you in case of a lawsuit.

Attorneys advise to also beware of what you ask in terms of questions. What might seem innocuous may in fact be discriminatory. So having counsel to review with you questions that are allowed on the Board interview is wise. In addition, make sure that if you reject a candidate it is backed up by facts like weak financials.

Note- This is not meant to be legal advice. Consult with counsel in advance. Read the Cooperator this month and there are several interesting articles on the Biondi case and also types of insurance to protect Board members.