Honig and Bholan Win Summary Judgment in Partition ActionJuly 11, 2018 |
In an action seeking partition and sale of a building on Second Avenue in Manhattan, Jeremy Honig and Michelle Bholan successfully obtained summary judgment for their Plaintiff clients, 50% owners of the building, against the Defendant, the other 50% owner of the building.
Plaintiffs sought partition and sale of the building, which was encumbered by a long-term net lease at a rent well below-market, when Defendant refused all third-party offers to sell the building and Plaintiffs could no longer sustain themselves financially on the below-market rent.
The Court held that Plaintiffs established their legal entitlement to a partition and sale of the building and that Defendants had not established any issue of fact sufficient to preclude the granting of summary judgment to the Plaintiffs. Specifically, the Court rejected Defendant’s argument that a partition and sale of the building should not be ordered because the building would sell for less at public auction than it would once the net lease expires in 2046.
The Court also rejected Defendant’s argument that the Plaintiffs had “unclean hands” in seeking partition, since Defendant failed to present any evidence whatsoever that Plaintiffs acted immorally or unconscionably in advancing their own financial interest with respect to the building.View Decision