Excerpt from the co-op's rules, that were invalidated by the arbitrator's decision:
No Music or Entertainment. There will be no music, exhibitions, comedy performances, lectures, dances, meetings, entertainment or any activity whatsoever other than the cooking and serving of meals, and serving of alcoholic beverages ancillary thereto, to a white tablecloth clientele. There will be no transmission of recorded or amplified sound, nor will any sound recording or amplification equipment be utilized in or about the Restaurant Premises.
American Arbitration Association
Case No. 13 183 01519 04
In the matter of the Arbitration between
Penquin Tenants Corporation
At all times during dining, Tenant shall be permitted to play recorded “background” music in the Restaurant Premises.
Nothing set forth herein shall be construed to limit the Tenant’s right to play music as set forth herein, or to us the Restaurant Premises on a non-regular basis for special events, private parties, weddings, exhibitions, lectures, meetings or other similar activities, so long as such activities comply with all applicable governmental laws, rules and regulations including, but not limited to, New York City noise codes…
Such [monitoring] equipment shall include a locked and tamper-proof multi-band limiter calibrated to ensure compliance with subsection (a) and (b) above.
…the installation of a “distributed sound system” using small speakers strategically located around the Restaurant Premises on the walls at least one foot from the ceilings to ensure that the sound will be in compliance with all laws governing noise.
Tenant shall, at its own cost and expense, design and install a sound resistant ceiling designed by the Audio Expert, which does not decrease the height from that which now exists.