- Posted: November 3, 2025 / Commercial Division Blog
Written by: Jeffrey M. Eilender, Channing J. Turner, Joshua Wurtzel, Thomas A. Kissane, Samuel L. ButtCourt Declines To Vacate Decision Granting Summary Judgment In Lieu Of Complaint Or Stay Entry Of Judgment Based On Alleged Defects In Service And Attorney Representation
On July 9, 2025, Justice Andrea Masley rejected several defendants’ arguments that defects in service of process and ineffective attorney representation warranted vacating the Court’s order granting summary judgment in lieu of complaint or staying entry of a judgment. In MF1 2022-FL9 LLC v. Shmuel Haikins, et al., Index No. 654647/2023, defendants had failed to appear in response to the lawsuit and the Court had granted judgment to plaintiff. Defendants then appeared and moved to vacate the Court’s order and stay entry of judgment on the basis that service had not been effective, as to one party, and counsel had failed to appear as instructed, as to another. The Court rejected these arguments, explaining: Read More
- Posted: October 29, 2025 / Commercial Division Blog
Written by: Jeffrey M. Eilender, Channing J. Turner, Joshua Wurtzel, Thomas A. Kissane, Samuel L. ButtIn Construction Case, The Failure To Properly Replace OFAC-Sanctioned Managers of Development Companies May Have Breached Implied Covenant Of Good Faith And Fair Dealing In Operating Agreements
On September 16, 2015, Justice Joel M. Cohen denied the portion of owner and developer defendants’ motion for summary judgment against a claim brought by minority members on the theory that the developers had not properly replaced the managers of the development companies when the original managers were sanctioned by the U.S. Department of Treasury Office of Foreign Assets Control (“OFAC”). In D&V Realty LLC, et al., v. Mikahil Vasilyevich Klyukin, et al., Index No. 656782/2022, Mikhail Klyukin beneficially owned various managers of the development companies. However, when OFAC sanctioned Klyukin in February 2022, these entities became OFAC-blocked entities by operation of law. The managers were replaced. However, plaintiffs claimed that the replacements were also owned by Klyukin, which caused more problems, and a failure to timely appoint appropriate replacement managers caused them harm. The Court upheld plaintiffs’ claim on a theory of breach of the implied covenant of good faith and fair dealing in the operating agreements. The Court explained: Read More
- Posted: October 27, 2025 / Commercial Division Blog
Written by: Jeffrey M. Eilender, Joshua Wurtzel, Channing J. Turner, Thomas A. Kissane, Samuel L. ButtCourt Grants Summary Judgment In Lieu Of Complaint Against Loan Guarantor Despite A Pending Foreclosure Action Against The Primary Borrower
On September 12, 2025, Justice Melissa A. Crane granted a plaintiff’s motion for accelerated summary judgment in lieu of complaint against the guarantor on a loan even though a separate action to foreclose against the primary debtor remained pending. In JPMDB 2018-C8 Constitution Plaza, LLC v. Aaron Berger, Index No. 651312/2025, the borrower defaulted on the loan and subsequently filed for bankruptcy. The plaintiff (who had been assigned the loan documents by the original lender) sued the individual guarantor on the loan in New York and initiated a foreclosure action on collateral in Connecticut. The court granted judgment to the plaintiff notwithstanding the ongoing foreclosure proceeding, explaining: Read More
- Posted: October 24, 2025 / Commercial Division Blog
Written by: Jeffrey M. Eilender, Joshua Wurtzel, Samuel L. Butt, Channing J. Turner, Thomas A. KissaneCourt Grants Summary Judgment To Landlord On Breach Of Lease But Denies Consequential Damages
On September 10, 2025, Justice Andrea Masley granted summary judgment to the plaintiff landlord on liability, and awarded attorneys’ fees under a lease, while granting summary judgment to defendant tenants to the extent of striking the landlord’s claim for consequential damages. The case is 1101-43 Ave Acquisition LLC v. Sonder Hospitality USA Inc., Index No. 653840/2020. Read More
- Posted: October 22, 2025 / Commercial Division Blog
Written by: Jeffrey M. Eilender, Joshua Wurtzel, Samuel L. Butt, Channing J. Turner, Thomas A. KissaneLender’s Dismissal Of Claims Against Guarantor Requires Dismissal Of Guarantor’s Related Third-Party Fraudulent Inducement Claim
On September 16, 2025, Justice Joel M. Cohen held that the voluntary dismissal of a note holder’s claim against Harvey Weinstein as guarantor warranted dismissal of a third-party complaint by Weinstein alleging fraudulent inducement. The case is AI International Holdings v. Weinstein, Index No. 656864/2017. Read More
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