Harbor House, Incorporated (defendant), owned a cooperative residential apartment building. Cooperative units could be sold only upon shareholder consent. Conrad Jones (plaintiff), a shareholder in Harbor House, contracted with Florence McNulty (plaintiff) to purchase McNulty’s ownership in Harbor House and lease McNulty’s apartment located directly beneath Jones’s apartment. Jones intended to use the additional apartment to house Jones’s expanding family. Harbor House disapproved the sale based on Jones’s intended use of the new apartment. Jones and McNulty sued for injunctive relief, alleging that Harbor House unreasonably withheld approval of the sale. The trial court ruled that Harbor House acted reasonably and in good faith. Jones and McNulty appealed.