May 6, 2020

The Supreme Court, Suffolk County (Hon. Carmen Victoria St. George) has dismissed an action against a cooperative community’s Board, in Bonati v. Primiani.  The plaintiffs were homeowners in the community and shareholders of the corporation that owned all the community, and they claimed that the community’s governing Board breached its fiduciary duty to them by failing to follow the community’s regulations.   Justice St. George concluded that the plaintiffs could only have brought their claims in a “derivative” capacity, as shareholders, but instead they incorrectly brought the action in their individual capacities.  The action was dismissed in its entirety.