Category Archives: Real Estate

Commercial Lease Good Guy Guarantee Clause Had Two Signature Lines

Court Decides If Managing Member Of Tenant LLC Liable As Guarantor  

Y.B. Associates Group, LLC, as landlord,  entered into a written agreement with nonparty Mount Vernon Social Adult Day Care Center, LLC, as tenant. whereby Associates leased a certain building to the Day Care Center. The lease was 20 pages in length and included 70 separately numbered paragraphs. Paragraph 68, which was on the second to last page of the lease, was entitled “Good Guy Clause,” and provided that, in the event of the tenant’s default in its obligations under the lease, including default in the payment of rent, the “undersigned . . . covenants and agrees” to perform the tenant’s obligations up to and including the “Release Date,” with such date defined as the date upon which the tenant surrendered possession of the premises.

The last page of the lease had two signatures, with the first signature placed on the line designated for “TENANT: Mount Vernon Social Adult Day Care Center, LLC,” and the second signature placed on the line designated for “LANDLORD: Y.B. Associates, LLC.” The first signature was acknowledged to be that of Oleg Rubin. Next to Rubin’s signature are the handwritten words, “managing member.” Below Rubin’s signature are two lines of typewritten text, the first of which reads, “By: Mount Vernon Social Adult Day Care Center Mtg Co., LLC, Managing Member,” and the second of which reads, “By: It’s [sic] Managing Member, Oleg Rubin.”

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S&G Sues NYEG to Enforce Written $3.39m Agreement to Sell 9.29 Acres in North Hempstead

Was Alleged Oral Modification of Contract of Sale Barred By the Statue of Frauds?

By written contract dated December 10, 2008, Alan Gestetner agreed to purchase and New York Golf Enterprises, Inc. agreed to sell 9.29 acres of property located in New Hempstead for the purchase price of $3,460,000. At the time the contract was entered into, the 9.29 acres were part of an undivided tax lot totaling approximately 160 acres on which NYGE operated a golf course. The contract called for the payment of $250,000 upon signing and an additional down payment of $750,000 due upon subdivision approval. It was undisputed that Gestetner did not tender payment of either the initial $250,000 down payment or the additional $750,000 down payment. It was also undisputed that on December 15, 2008, and again on December 19, 2008, nonparty Cheon Cho, who executed the contract as the president of NYGE, accepted two payments from Gestetner, each in the amount of $25,000.

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Brother Seeks Possession of Apartment 15 at 42 Bank Street From Sister

Were Defenses of Life Estate and Constructive Trust Barred As A Matter of Law?

Kenneth Rosenblum brought a license holdover proceeding against Diana Treitler and Bruce Treitler seeking possession of apartment 15 at 42 Bank Street. The Treitlers answered and asserted several affirmative defenses.

The third affirmative defense:

That Respondent Diana Treitler who is the sister of the Petitioner has been granted the equivalent of a Life Estate to occupy the subject premises by the Petitioner who promised her the apartment for as long as she wanted. Said Life Estate was granted in or about 2011 and the Respondent has been in possession of the subject apartment since said date. Respondent Diana Treitler has unequivocally relied upon the representation of Petitioner who said that he was giving the subject apartment to said Respondent for as long as she wanted. Respondent in reliance has taken possession of the subject apartment and made improvements thereto. Thus, pursuant to Promissory Estoppel and detrimental reliance, the Petitioner is estopped from denying Respondent’s right of possession to the subject apartment.

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Sibling Transfers Title to Brother’s Brooklyn Properties Under Power of Attorney

Were Two Real Estate  Deeds Authorized/Prohibited Under the POA?

In October 2016, Mustafa Choudari executed a deed purporting to convey title to property located at 1474 Broadway in Brooklyn from Mohammad Choudari, his brother, to Mohammad and Mustafa, jointly. In February 2017, Mohammad commenced an action, pursuant to RPAPL article 15 against Mustafa to quiet title to that property, alleging that Mustafa forged his name on the October 2016 deed.

In March 2017, Mustafa executed a second deed purporting to convey title to property located at 1472 Broadway in Brooklyn from Mohammad to Mohammad and Mustafa, jointly. In June 2017, Mohammad commenced another action to quiet title to that second property, alleging that the March 2017 deed was also forged. Mustafa asserted counterclaims, alleging, in effect, that the properties were purchased as part of a joint venture agreement between the brothers. The actions were subsequently consolidated.

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Assignee of Residential Real Property Mortgage Filed Suit to Foreclose

Was Suit Barred By Passage of Time After Assignor’s Acceleration Notice?

In January 2007, Stanley Caldwell and Sheila Caldwell executed a note in the amount of $210,000, in favor of JPMorgan Chase Bank, N.A. The note was secured by a mortgage on residential property located in Mastic Beach. In June 2011, JPMorgan commenced an action to foreclose the mortgage. In the complaint, JPMorgan elected to call due the entire amount secured by the mortgage. In July 2015, the 2011 action was voluntarily discontinued.

In October 2017, U.S. Bank National Association, as assignee of JP Morgan, commenced an action to foreclose the same mortgage. The Caldwells interposed an answer asserting several affirmative defenses, including expiration of the statute of limitations. Thereafter, the Bank moved for summary judgment on the complaint against the Caldwells.  The Caldwells opposed the motion and asked the court to search the record and award them summary judgment dismissing the complaint. Supreme Court denied the motion and, in effect, denied the Caldwells’ request to search the record and award them summary judgment. Both the Bank and the Caldwells appealed..

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Breaking Up Is Hard To Do- When A Residential Lease is Involved

Court Adjudicates Claim of Tenant and Counterclaim of Landlord

Emily Pickens filed a small claims action in  Civil Court against Terry Lane seeking return of a security deposit in the amount of $2,825 on a market-rate, residential apartment that she leased after vacating the premises about a year before the expiration of her two-year lease.

Lane asserted a counterclaim against Pickens for the rent due between the time when she vacated the apartment and when he was able to re-rent the apartment, plus the expenses incurred to re-rent the apartment.

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Purchaser of Great Neck Unit Fails to Close on Two TOE Dates

Court Adjudicates Seller’s Claim for Liquidated Damages

P.W. Developers commenced a declaratory judgment action  against R.C. arising out of a purchase agreement and a rider  pursuant to which the R.C. agreed to purchase from P.W.D. residential unit 000 and garage unit 0 located at 88 Cuttermill Road, in Great, Neck New York for a total purchase price of $545,000.00, with a down payment of $54,500.00 deposited with the parties’ escrow agent, leaving a balance of $490.500 due to be paid at the closing.  P.W.D moved for summary judgment granting the relief sought in the complaint.

The purchase agreement provided that in the event of R.C.’s default for failing to close P.W.D shall “retain the Downpayment [sic] as liquidated damages”. And the rider to the purchase agreement also provided that if R.C. defaulted under the purchase agreement, the “[PWD]shall retain the Downpayment [sic] as liquidated damages”.

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Insured’s Home Was Damaged By Fire

Were Broker/Carrier Liable for Underinsurance?

Kim Clark’s home was damaged by a fire.  Clark failed to advise her insurance agent or broker about an addition to her home which increased its square footage by approximately fifty percent. As a result of the fire, Clark claimed losses to her home and personal property far exceeded her insurance coverage limits which did not account for the unknown increased square footage of the renovated home.

Clark filed suit seeking damages against Urbanski Insurance Agency, Inc.  alleging it negligently procured insufficient insurance coverage for the home and against Preferred Mutual Insurance Company claiming it was vicariously liable for Urbanski’s alleged negligence.

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Cinder Block Boundary Wall Did Not Comport With Deeds For Contiguous Properties

Court Decides If Doctrine Of Practical Location Was Dispositive of Neighbors’ Border Dispute

Robert Czenszak and others commenced an action to quiet title and for declaratory relief against Anthony Iasello and Catherine Iasello. Czenszak aleged that a cinder block wall forms the boundary line between the parties’ adjoining properties under the doctrine of practical location and that a strip of land that lies between the cinder block wall boundary line and the boundary line set forth in the respective deeds to the adjoining properties—which is a small triangular strip of land measuring approximately 4.2 feet at its widest point—was owned by the Czenszak.

The Iasellos asserted a counterclaim for a judgment declaring that the boundary line between the adjoining properties was as described in the respective deeds and that they owned the disputed strip. They moved for summary judgment dismissing the complaint and on their counterclaim.  Supreme Court searched the record and, under the doctrine of practical location, awarded summary judgment to Czenszak, declaring that he owned the disputed property. The Iasellos appealed.

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Mansion Failed to Close on $2.2m Old Westbury Contract of Sale

Court Determines Whether Or Not Calvano Keeps $110K  Deposit

In April 2020, 7 Mansion LLC entered into a contract to purchase from Lynn Calvano a parcel of property located in Old Westbury for a purchase price of $2,200,000. With a $110,000 contract deposit. Following various delays and an amendment to the contract, Mansion did not appear at a scheduled closing and, by letter dated December 8, 2020, Calvano cancelled the contract. Thereafter, Mansion commenced an action against Calvano seeking specific performance of the contract. Mansion also filed a notice of pendency against the property. Calvano moved to dismiss the complaint based upon documentary evidence and to cancel the notice of pendency. Supreme Court granted the motion. Mansion appealed.

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