An order of attachment is a provisional remedy that prevents a defendant from disposing of assets during the pendency of an action. In cases in which a defendant disposes of property with intent to defraud creditors or frustrate the enforcement of a judgment, Article 62 of the CPLR provides a mechanism to preserve those assets.
Real Property
Second Department Affirms Westchester Commercial Division’s Dismissal of Tort Claims as Duplicative of Contract Claim
Business litigation often involves both contract and tort claims. A fraud or negligence claim that is deemed “duplicative” of a breach of contract claim, however, will be dismissed. When is that the case? The Westchester Commercial Division and the Appellate Division, Second Department recently answered this question in Oceanview Associates, LLC v. HLS Builders Corp., …
A Lesson for Landlords on Personal Guarantees in Leases
Commercial leases are often complicated, as the stakes are high for each party. A tenant needs the right space to operate its business and a landlord needs reliable tenants to cover its expenses and earn a profit. When tenants cease paying rent and vacate or are evicted, actions by landlords to collect unpaid rent ensue.…
Warning to Easement Holders: Don’t Overstep Your Bounds
An easement, or right-of-way, grants someone the right to cross or use another’s property for a specific purpose. But if the holder of the right-of-way exceeds the scope of the easement, he or she may be liable for damages for trespass. That was the case in Julia Properties, LLC v. Levy.
In July 2009,…
Short Sale Buyer Granted a TRO After the Seller Tried to Back Out
For many, purchasing real estate is a stressful endeavor. It’s further complicated when one attempts to buy distressed property through a short sale, when an owner sells property for less than the mortgage balance. Lenders typically allow short sales to recoup a portion of the loan balance quickly and avoid a lengthy and expensive foreclosure…
Property Sellers’ Representations About Existing Facts Survive Closing
Ordinarily in real estate sales, the seller’s pre-closing representations do not survive the closing unless the contract expressly states that they do. The situation is different, however, when the seller has made a pre-closing representation about a then-existing fact, like whether the tenants are current in rent. That was the state of facts alleged by…
Lessons for Landlords: Holding Corporate Representatives Liable for Tenant Lease Obligations and the Timeliness of Unpaid Rent Claims
A recent decision from Westchester Commercial Division Justice Linda Jamieson addressed two issues that arise in commercial landlord-tenant relationships: (i) whether a landlord can pierce the corporate veil to hold a tenant’s corporate representative liable under leases; and (ii) the timeliness of claims for past due rent.
Piercing the Corporate Veil
In Hoffman Investors Corp., …