Grill and Schieber Obtain Dismissal of Lawsuit Against Brooklyn Condominium

November 20, 2020 | Real Estate, Zoning & Land Use | Construction

Rivkin Radler LLP recently obtained the dismissal of a lawsuit brought against the developer of a Brooklyn condominium by purchasers of a multi-million-dollar apartment. David M. Grill and Evan R. Schieber represented the developer. The purchasers brought on an emergency application, by order to show cause, seeking to stay the closing pending an adjudication of their claims, which included challenges to the offering plan, fraud, and additional common law claims, such as frustration of purpose and impossibility. The attempt to halt the closing pending a disposition of the contract deposit has now become a familiar dilatory tactic used by discontented purchasers looking to have it both ways – prevent the developer from marketing the apartment on the one hand, while on the other hand, pursuing recovery of the contract deposit.

In flatly rejecting Plaintiff’s application for injunctive relief, the Court agreed that the injunction should be denied and aptly determined that plaintiff could not meet the standards to secure injunctive relief. In addition, upon learning that the contract with the developer contained a broad arbitration provision, the Court, sua sponte, dismissed the complaint. It is a critical decision that now enables the developer to terminate the agreement and take the steps to both re-market the apartment and recover the contract deposit from the purchasers. The implications of the ruling could be extensive, since it sends a message to purchasers seeking to improperly use the Courts as a tool to stay their contractual obligations that they may not pursue contract rescission and damages, while preserving their right to close title if they lose on the merits.

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