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Second Ave. 1355 Realty LLC v. 1355 Second Owner LLC

Appellate Division of the Supreme Court of the State of New York
Sep 25, 2018
164 A.D.3d 1153 (N.Y. App. Div. 2018)

Opinion

7143 7143A Index 650507/16

09-25-2018

SECOND AVE. REALTY LLC, Plaintiff–Appellant, v. 1355 SECOND OWNER LLC, et al., Defendants–Respondents.

Malek Moss PLLC, New York (Kevin N. Malek of counsel), for appellant. Stempel Bennett Claman & Hochberg, P.C., New York (Richard L. Claman of counsel), for 1355 Second Owner LLC and SL Green Realty Corp., respondents. Fidelity National Law Group, New York (Joyce A. Davis of counsel), for Fidelity National Title Insurance Services LLC, respondent.


Malek Moss PLLC, New York (Kevin N. Malek of counsel), for appellant.

Stempel Bennett Claman & Hochberg, P.C., New York (Richard L. Claman of counsel), for 1355 Second Owner LLC and SL Green Realty Corp., respondents.

Fidelity National Law Group, New York (Joyce A. Davis of counsel), for Fidelity National Title Insurance Services LLC, respondent.

Acosta, P.J., Sweeny, Manzanet–Daniels, Gesmer, Singh, JJ.

Orders, Supreme Court, New York County (O. Peter Sherwood, J.), entered May 26, 2017 and November 6, 2017, which, to the extent appealed from as limited by the briefs, granted defendants' motions to dismiss the causes of action for breach of contract against defendant 1355 Second Owner LLC, breach of contract and of fiduciary duty against defendant Fidelity National Title Insurance Services LLC, and aiding and abetting breach of fiduciary duty against 1355 Second Owner and defendant SL Green Realty Corp., unanimously affirmed, with costs.Plaintiff alleges that defendant 1355 Second Owner LLC (the buyer) breached the agreement pursuant to which it would purchase from plaintiff a multi-use building in Manhattan. Plaintiff concedes that it failed to meet the condition precedent that it deliver the building "vacant, free of all residential tenancies and occupancies," which would relieve the buyer of its duty to close on the purchase (see Oppenheimer & Co. v. Oppenheim, Appel, Dixon & Co., 86 N.Y.2d 685, 693, 636 N.Y.S.2d 734, 660 N.E.2d 415 [1995] ), but argues that the buyer waived the condition precedent.

The documentary evidence conclusively establishes that there was no waiver of the condition precedent (see Jacoby & Meyers v. Crispi, 205 A.D.2d 312, 313, 613 N.Y.S.2d 13 [1st Dept. 1994] ). The agreement required that any waiver be express and in writing. The January 6, 2016 letter and January 7, 2016 email written by buyer's counsel on which plaintiff relies do not mention either waiver or the vacancy condition precedent. Indeed, they do not appear to address these issues at all. They focus on a dispute over a different but related provision of the agreement, which obligated plaintiff to use its best efforts to bring about the fulfillment of the condition precedent.

Given the dismissal of the contract claim against the buyer, plaintiff's claim against the escrow agent (National Fidelity) for releasing the deposit to the buyer was limited to the contractual reimbursement amount of $70,000. That amount having been paid, the court correctly dismissed the breach of contract and fiduciary duty claims against the escrow agent and the aiding and abetting breach of fiduciary duty claims.


Summaries of

Second Ave. 1355 Realty LLC v. 1355 Second Owner LLC

Appellate Division of the Supreme Court of the State of New York
Sep 25, 2018
164 A.D.3d 1153 (N.Y. App. Div. 2018)
Case details for

Second Ave. 1355 Realty LLC v. 1355 Second Owner LLC

Case Details

Full title:Second Ave. 1355 Realty LLC, Plaintiff-Appellant, v. 1355 Second Owner…

Court:Appellate Division of the Supreme Court of the State of New York

Date published: Sep 25, 2018

Citations

164 A.D.3d 1153 (N.Y. App. Div. 2018)
164 A.D.3d 1153
2018 N.Y. Slip Op. 6191

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