THE DOCKET  /  REFUSAL TO PRODUCE BOOKS AND RECORDS

What the board is said to have done

Declined a shareholder's demand to inspect the cooperative's books and records while a holdover proceeding against her was already pending.

No tribunal ever decided this.

Cushing v. Sanford Equities Corp. · 2024 NY Slip Op 00405 (2d Dept 2024) · Sup Ct Queens County · Index 714585/2021

No court has decided whether this conduct occurred. This decision resolved a procedural question. Nothing here is a finding that anyone did anything.

Outcome

Board prevailed

Filed

2021-06-25

Last decision

2024-01-31

Elapsed

2.6 yrs

Brought by

unit owner

Posture

interlocutory appeal

What the court held

A shareholder seeking inspection under Business Corporation Law s 624 must satisfy the requirements of s 624(b); failing to do so, the request is properly denied without reaching whether the records should be produced. A preliminary injunction staying a related holdover proceeding was likewise denied for failure to show likelihood of success.

“The Supreme Court also properly denied that branch of the plaintiffs' motion which was to inspect the cooperative's books and records, as the plaintiffs failed to satisfy the requirements of Business Corporation Law s 624(b)”

2024 NY Slip Op 00405 at *2

Outcome in full

The cooperative prevailed, with costs. Denial of a preliminary injunction staying the holdover proceeding affirmed, and denial of BCL s 624 inspection affirmed for failure to satisfy s 624(b). The merits of the inspection demand were never reached.

What it cost

Not disclosed. No decision in this case states a figure, and we publish no estimate. Why costs are mostly blank.

What would have prevented this

The shareholders appeared PRO SE and lost on the statute's own prerequisites -- the five-day written demand and purpose affidavit of BCL s 624(b)-(c) -- rather than on whether they were entitled to the records. A records right that requires counsel to invoke correctly is not a right most owners actually have. Florida's equivalent runs on a written request and a 10-working-day clock.

Sources

Read in full and verified 2026-08-04.

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