Commercial Contracts Litigation

Supreme Court, Appellate Division, Second Department, New York.

April 16, 2013
105 A.D.3d 539, 963 N.Y.S.2d 206

Background: The member of limited liability company (LLC) brought derivative action against the LLC and property owner, alleging that there was an agreement between the LLC and Hotel Owner that the LLC would serve as the leasing agent for the Hotel Owner’s property. Our firm represented the Hotel Owner, seeking to dismiss all claims against the Hotel Owner. Our firm sought the return of over $200,000 and brought counter claims on behalf of the Owner totaling $800,000. The member sought to dismiss the counter claims. The Supreme Court, New York County, denied the Owners motion for summary judgment to dismiss the member’s lawsuit against the Hotel Owner. Our firm appealed the Supreme Court’s decision.

Decision: The Appellate Division held that the member’s claims were to be dismissed based upon the statue of frauds. The Hotel Owner recovered over $200,000 and the oppositions claims were dismissed.