Court Denies Motion For Summary Judgment In Lieu Of Complaint Because Issue Of Fact Existed As To Standing

Posted: April 22, 2026 / Written by: Samuel L. Butt, Thomas A. Kissane, Channing J. Turner, Joshua Wurtzel / Categories Commercial, Standing, Summary Judgment

Court Denies Motion For Summary Judgment In Lieu Of Complaint Because Issue Of Fact Existed As To Standing

On March 24, 2026, in 1411 Bushwick Ave. NDB LLC v. Bracha, Index No. 655425/2025, Justice Joel M. Cohen denied plaintiff’s motion for summary judgment in lieu of complaint as defendants raised issues as to standing. The Court explained:

However, summary judgment in lieu of complaint is denied because Defendants have raised a legitimate issue as to Plaintiff’s standing. Specifically, Defendants submit that Plaintiff 1411 Bushwick Avenue NDB LLC is wholly owned by Defendant Ilan Bracha (and he is its only member) and thus both sides cannot be considered genuine adverse parties (see NYSCEF 19 [“Bracha Affirm”]). Bracha asserts that “Binstock has no ownership interest, no capital contribution, and no managerial rights in [Plaintiff], and this is confirmed by both [Plaintiff]’s Operating Agreement and [Plaintiff]’s tax returns, which list me as the sole member” (id. ¶ 8; see also NYSCEF 22-24).

Plaintiff asserts that it has an ownership interest by virtue of his interest in other entities, Real Estate Club 360 LLC and Reclub NDB LLC, and through an assignment “the [Plaintiff] Operating Agreement from December 4, 2019 . . . was obviously superseded and is no longer operative to the extent it vests control in Mr. Bracha as the sole member” (NYSCEF 28 [“Binstock Reply”] ¶ 12). However, Binstock fails to submit any document establishing a transfer of ownership of Plaintiff to Binstock, Real Estate Club 360 LLC, or RECLUB NDB LLC. Binstock only submits an assignment of Bracha’s interest in Real Estate Club 360 LLC to Binstock and other members (see NYSCEF 30), and an assignment of a purchase and sale agreement of the Bushwick property from [Plaintiff] to 1411 Bushwick Development LLC (Mr. Bracha’s entity) (NYSCEF 33).

To the extent Binstock signed a purchase and sale agreement, the assignment, and the Promissory Note at issue here on behalf of Plaintiff as “manager” (Binstock Reply ¶¶ 8–9), that only raises an issue of fact as to Binstock’s interest and whether he has standing to bring claims on behalf of Plaintiff.

Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions concerning standing or summary judgment.