Monthly Archives: May 2021

Hotels Quiet Due to COVID Related Exec. Orders: Were the Resulting Losses Covered by Insurance?

This was originally published on the SGR Blog.

Almost every commercial enterprise carries, or is covered by, insurance policies intended and expected to cover catastrophic losses. The pandemic certainly has been catastrophic. But, as a recent case illustrates, coverage may depend upon whether or not the virus is found to have caused direct physical loss or damage. 

The plaintiff/hoteliers own and/or operate hotels in Onondaga County, two of which were affiliated with Marriott International, Inc. Zurich American Insurance Company, issued insurance to Marriott covering the hotels.

Continue reading

Would Garage Be Permitted To Operate Rent Free During Pandemic?

This was originally posted on the SGR Blog.

Court Determines if Frustration of Purpose Defense Applied

The pandemic has unquestionably, materially, and adversely affected many businesses that have been directly impacted by New York State Executive and New York City administrative orders restricting work and other activities. But, as a recent case illustrates, those legal mandates and prohibitions may not suffice to sustain the defense of frustration of purpose,

Union 16 Parking LLC operates a parking garage at a building owned by East16th St. Owner LLC. TMO Parent LLC signed a good guy guarantee in connection with Union’s lease. Owner claimed that Union had not paid rent since April 1, 2020, and owed over $1 million through November 1, 2020. They argued that the lease did not permit Union to withhold rent under any circumstance. And did not contain a force majeure provision.

Continue reading

“The [U]mpire Strikes Back” at Former MLB Player: How Much Was His Reputation Damaged By Podcast?

This was originally posted on the SGR Blog.

The Court is the “umpire” when an actual baseball umpire brings suit. And, as a recent case illustrates, jurisprudential umpiring is far more complicated than simply calling “balls and strikes.”

Joseph H. West, a currently active and well-known Major League Baseball umpire, sued Paul Lo Duca, a former Major League Baseball player, for defamation. West alleged that Lo Duca made defamatory statements about him on a podcast carried on a popular sports podcast provider. Contending that, during the podcast, Lo Duca, a retired catcher, described an alleged conversation with teammate Billy Wagner, a retired relief pitcher, in which Wagner purportedly claimed that West gave him favorable ball-and-strike calls during the game because Wagner gave West access to one of his vintage automobiles.

Continue reading

Rensselaer County Neighbors in “Stump Law” Suit: Who Owned Land On Which Cut Trees Were Located?

This was originally posted on the SGR Blog.

The New York State Legislature has, over the years, passed hundreds of statutes. Some are generally known. But some are obscure. Real Property Actions and Proceedings Law Section 861, known in the trade as the “stump law,” covers allegations that a person impermissibly cut down trees on the property of another. And, as a recent case illustrates, “stump law” litigation raises unique factual and legal issues.

Daniel J. Holser owns rural property in the Town of Poestenkill, Rensselaer County, that adjoins a portion of property owned by Gregory T. Miller and Lauren R. Miller. Holser sued the Millers on December 30, 2016, after discovering that trees had been cut and removed from his property and there was damage to his land, including significant rutting. Alleging that the Millers directed Todd Geerholt and others to remove the trees on their property, the Holsers asserted causes of action for trespass, conversion, negligence and violations of RPAPL 861. Following discovery, Geerholt moved for dismissal of the complaint as untimely. And the Millers moved for summary judgment dismissing the complaint against them. Supreme Court denied those motions. Geerholt and the Millers appealed.

Continue reading

Contract of Sale Signed by One Member of Three-Party LLC: Apparent Authority Meets Actual Authority at E.N.Y Plaza

This was originally posted on the SGR Blog.

A contract for the sale of entity-owned real property may contain a representation that the signatory on behalf of the seller has the authority to bind the titleholder. But what happens if that authority is challenged after the agreement is signed? As a recent case illustrates, apparent authority may not suffice where actual authority does not exist.

On July 12, 2004, Samuel Fleischman, Avi Shriki, and Mordechai Danino executed an operating agreement when they formed E.N.Y Plaza, L.L.C., a limited liability company. Fleischman, Shriki, and Mordechai Danino each held a one-third interest in Plaza, the sole asset of which is a building located in Brooklyn.

Continue reading

Did Siberian Husky “Charlie” Have Known Vicious Propensities? Postwoman’s Testimony May Have Dispositive Bite

This was originally posted on the SGR Blog.

Is every dog entitled to one bite? As a recent case illustrates, proof of prior canine misconduct is required to show vicious propensity. 

Suzanne Castelluccio was bitten on May 12, 2016, by a dog named “Charlie” in the driveway of 13 Kent Street in Rock Hill, New York, owned by Karen Hudson and Phillip Hudson. 

According to Karen Hudson, she and Castelluccio were traveling to Middletown when they stopped by the Hudson house in Rock Hill. Hudson exited the van and approached the chain-linked pen, which contained her Siberian husky, Charlie. The fence of the pen was approximately five feet high and extended to her garage. Hudson approached the gated pen, and Charlie jumped up with his front paws on the fence; she then went back toward the vehicle to retrieve her house keys. Castellucio saw Hudson pet the husky who asked for and was granted permission to pet Charlie. Hudson then proceeded from the van to her front door.

Continue reading

Frustration/Impossibility/Casualty/Eminent Domain: Rent Default Restaurant Asserts Quartet of Legal Defenses

This was originally posted on the SGR Blog.

Certain defenses to claims by landlords against commercial tenants for rent accrued but unpaid during the pandemic have become almost “boilerplate.” The frustration of performance. Impossibility of performance. They were closed by casualty. But, as a recent case illustrates, joining that panoply is the defense that governmentally-ordered restrictions or shutdowns constituted a taking by eminent domain that excused the payment of rent.

111Fulton St. Investors, LLC is the landlord for a commercial space located on the ground floor of a building in Manhattan. Fulton Quality LLC entered into a lease for the premises in 2011 for a twelve-year term. Quality runs a restaurant at the site. Investors insisted that Quality was in default of the lease and pointed to an October 30, 2019 letter allegedly sent to Quality that sets forth the basis of the default. Quality later cured its defaults but stopped making payments in March 2020. Another default letter was sent in June 2020. Investors sued and moved for summary judgment seeking the amount it claimed was due.

Continue reading

Did MOU Constitute an Enforceable Contract? Court Determines If All Material Terms Were Covered

This was originally posted on the SGR Blog.

Proposals, counter-proposals, term sheets, and memos-of-understanding are regularly and routinely exchanged in the ordinary course of negotiations of contracts for the purchase and sale of real property. But, as a recent case illustrates, a mutually accepted MOU may be found to constitute a binding and enforceable agreement in the absence of a more formal contract.

South Bronx Overall Economic Development Corp. sued 4521 Park Ave. Realty Corp. for specific performance and breach of contract in connection with an alleged agreement for sale by 4521 Park to Sobro of the real property at 4521-4529 Park Avenue in the Bronx.

Continue reading