Retailer – Leasing Dispute
Represented a children’s retailer in a suit brought by the Metropolitan Transit Authority (MTA) for back rent and future rent (with personal liability) of almost half a million dollars on its lease at Grand Central Terminal. The Herrick team negotiated a favorable settlement on behalf of the client.
Commercial Landlord – Leasing Dispute with International Retailer
Herrick delivered a major victory to a commercial landlord against a billion-dollar international retailer with more than 500 stores worldwide. The retailer sought rescission of its lease based on claims of mutual mistake, breach of contract, breach of duty to cooperate and breach of implied covenant of good faith. The court denied the tenant's motion to amend its complaint to allege impossibility, frustration of performance, constructive eviction, as untimely. Herrick successfully showed that the landlord was not required to do the work for the tenant or to obtain all necessary permits. Herrick believed that the retailer's real motivation for abandoning the space was a corporate decision to open a larger store at a different location. The court found that the retailer failed to conduct proper due diligence as to the necessary certificate of occupancy, the tenant took the premises "as is" and the landlord made no representation to permitted uses. The court dismissed every one of the claims against the landlord. Furthermore, the court granted the landlord a judgment of over $13 million dollars for unpaid rent, plus interest and attorneys fees, bringing the total expected judgement to over $20 million dollars.
JMH Development – Dispute Over Luxury Residential Development
Herrick achieved a significant victory for JMH Development, the managing member in a joint venture created to develop a luxury residential development in Miami, Florida, in a dispute against PSB, the joint venture’s partner, who asserted false claims including breach of contract and fiduciary duty, among others. After a lengthy and contentious litigation culminating in a 3-day bench trial, the court ruled in favor of JMH Development on every single claim and issue and dismissed the case.
Wolf Haldenstein – Dispute with Manhattan Landlord
Achieved significant award for Herrick client, the highly-respected plaintiff's class action law firm Wolf Haldenstein Adler Freeman & Herz LLP, in a dispute with their Manhattan landlord. The landlord failed to properly renovate Wolf Haldenstein's office space as outlined in their lease agreement, thus leaving the office in an unsuitable condition for people to work in. The court affirmed that the landlord and its affiliates failed to properly renovate office space leased by Wolf Haldenstein and dismissed the landlord's counterclaim for allegedly owed back rent. The court also awarded Wolf Haldenstein attorney fees.
Partnership Dispute
Represented a high net worth client in a very contentious dispute over a property they owned as tenants in common. We were able to settle the dispute with a buyout that was beneficial for both parties and allowed each party to go its separate way.
Real Estate Litigation and Hearing – Nonprofit Facility
Herrick represented PEY Realty LLC, which is an entity formed for the benefit of the Chabad Lubavitch of the West Side, in an arbitration against an affiliate of Sackman Enterprises. In 2017, PEY entered into a contract to purchase a $30m community facility condominium unit in a new building being developed on W 96th St. The condominium unit, 6 floors and a cellar, was intended to house the Chabad’s permanent operations, including all religious, educational, and community services. In connection with the contract, PEY tendered a multi-million dollar down payment. The project experienced years of construction delays. Once it became clear that litigation was imminent, each party called defaults under the contract. After a three-day hearing, The Herrick team was able to secure an award directing that the down payment be returned to PEY, together with a significant award in additional money damages, including the lion’s share of attorneys’ fees. The Chabad can finally put the down payment to a productive use and resume its efforts to find a permanent home.
NY-based Nursing Home Owner – Section 363 Purchaser
Represented NY-based nursing home owner in section 363 acquisition of 699 92nd Street in Brooklyn, NY, from a purchaser who had filed for bankruptcy. The site is triple net leased to a non-profit integrated healthcare network that is New York State's largest healthcare provider and private employer. (E.D.N.Y. 2021).
Major Telephone Company – Appellate Win That May Benefit Utility Companies Throughout New York City
Successfully defended a major telephone company against claims brought by a New York City contractor seeking several million dollars in fees for “interference work” under a municipal contract. Our client challenged the interpretation of a common law rule related to interference work, although many contractors had been utilizing this interpretation for years in order to obtain payments for this work from the utilities. This Appellate Division decision affirmed the correct interpretation of the common law which only allows the City (and not a private contractor), when utilizing its police powers, to require payment from utilities for protection or relocation of its facilities. Going forward, utilities may have substantial sums that they were previously led to believe that they were responsible.
Commercial Real Estate Firm – Partial Summary Judgement Granted in Complex Dispute
Awarded partial summary judgement on behalf of commercial real estate client in a dispute with a former officer and member of the parties’ investment vehicle. The New York Federal Court held that that the plaintiff former officer breached contractual obligations and fiduciary duties by misappropriating resources and soliciting investors during his employment. The Court granted Herrick’s clients’ requested declaratory relief by holding that they properly ascribed “Cause” to the officer’s termination upon discovering the misconduct and validly effectuated the termination and redemption of his profits interest in the parties’ investment vehicle for a penny. The Court also ordered the disgorgement of the former officer’s salary and value of company paid benefits during his period of disloyalty together with injunctive relief requiring him to return all confidential and proprietary information. Notably, the Court also held that the officer’s new business and business partner were jointly and severally liable for aiding and abetting the breaches of fiduciary duty. The remaining claims asserted between the parties were resolved shortly thereafter on confidential terms.
All Year Holdings Limited – Special Litigation Counsel
Represented real estate debtor as special litigation counsel. Won motion to dismiss adversary proceeding, which was affirmed on appeal. 684 B.R. 734 (S.D.N.Y 2022)
Wythe Berry Fee Owner LLC – Debtor in Chapter 11
Represented debtor in chapter 11 proceeding involving the William Vale Hotel, a luxury hotel in Brooklyn. Hotel sold for $177 million pursuant to plan of reorganization. 654 B.R. 524 (Bankr. S.D.N.Y. 2022-24)
Condominium Board – Construction Defect Claims
Representing a condominium board with respect to construction defect claims against sponsor and principals. The case is Board of Managers of 252 Condominium v. World-Wide Holdings Corp., et al. (N.Y. Sup. Ct.).
Schneider, et al. v. Pine Management, Inc., et al. (N.Y. Sup. Ct.):
Representing LLC property manager and majority LLC members in suit by minority LLC members alleging breach of contract and breach of fiduciary duty claims related to scope of manager’s authority to manage properties owned by LLCs.
Real Estate Investment Firm – Motion to Dismiss Granted in Breach of Contract Dispute
Successfully defended real estate investment firm in breach of contract lawsuit where the plaintiff/borrower was attempting to claw back a multi-million dollar late payment charge in connection with a promissory note. The New York State Commercial Division granted our client’s motion to dismiss in full.
Real Estate Brokerage Firm – Favorable Decision in Breach of Contract Dispute
Represent a global real estate brokerage firm in a breach of contract dispute. In this matter, the brokerage firm contracted to the be the exclusive agent in the sale of multiple properties in New York City. Herrick’s client brought an action in the Supreme Court of the State of New York when the defendants failed to pay the requisite commissions due under the agreement. As a result, the Court granted the client's motion for summary judgement and ordered a judgment in favor of the brokerage firm for the full amount owed. This litigation remains ongoing.
Real Estate Investor – Summary Judgment Granted in Contract Dispute over Prospective Purchase of Condominium Unit
Herrick successfully represented the purchaser of a condominium unit in a dispute over a time of the essence closing date. In the order, the Judge granted our motion for summary judgment in its entirety by determining that the seller breached the contract by failing to timely close. Consequently, our client was entitled to a refund of its down payment, a lien was imposed on the property and attorneys’ fees were awarded to our client as the prevailing party.
Beekman East Condominium Board – Hoarding Dispute
Represented the condominium board of the Beekman East, a 141-unit condominium in midtown Manhattan, in a hoarding case against a shareholder for breach of contract and various equitable relief. The board was granted a preliminary injunction directing the shareholder to allow the condo and its contractors access to the unit in order to cure the hoarding conditions, exterminate and make all necessary repairs.
Partial Owner of Real Estate Brokerage Firm – Arbitration Win in Dispute Over Value of Membership Interest
Herrick successfully represented the partial owner of a brokerage firm in dispute over the value of membership interest in the company. As a result, Herrick’s client was awarded substantially more than the purchaser’s initial offer.
Successful Dismissal of Application for Property Seizure by Eminent Domain – Town of West New York, New Jersey
Herrick represented a property owner against the Town of West New York, NJ (the "Town") in condemnation proceedings; and we successfully stopped the Town from seizing our client’s property by eminent domain. In addition, the Court granted our client’s application for attorneys’ fees and costs, due to the Town’s failure to engage in bona fide good faith negotiations since the inception of this matter.
Commercial Real Estate Firm – Motion to Dismiss Granted in Contract Dispute
Herrick successfully represented a nationally prominent commercial real estate firm in a motion to dismiss an amended complaint filed by a potential purchaser of a significant commercial condominium unit in Manhattan. After signing the purchase contract, the purchaser challenged certain aspects of the transaction. The New York County Commercial Division granted the seller’s motion to dismiss the purchaser’s amended complaint in its entirety and canceled the notice of pendency which was preventing our client from refinancing or selling the property.
Commercial Occupant – Summary Judgment Granted in Dispute with Landlord
Herrick successfully represented a commercial business in a dispute with their landlord where their landlord sought to evict them by issuing a notice to terminate their “tenancy” by issuing a 90-day termination notice. After the parties were unable to reach a settlement, Herrick filed a motion for summary judgment seeking dismissal of the proceeding. The Court ultimately granted our client's motion in its entirety and dismissed the proceeding due to the landlord’s failure to accurately describe their legal relationship.
Property Owner – Construction Defect Dispute
Represented a property owner as the plaintiff in a complex construction suit filed against the construction manager and licensed special inspector for a high-profile, luxury residential property in Manhattan. After multiple days of mediation, Herrick obtained a favorable settlement for the client.
Condominium Board – Condominium Litigation
Prevailed on a matter of first impression before the Appellate Division, First Department. At issue was the statute of limitations under Real Property Law (“RPL”) section 339-l, which provides that condominium common charges are to be held in trust for the benefit of materials suppliers, laborers, contractors, and other construction professionals, provided that (i) those individuals provided services benefitting condominium common elements and (ii) the services were provided at the request or consent of the board of managers. RPL § 339-l does not specify a statute of limitations, and a contractor sued Herrick’s client for a violation of the statute based on a five-year-old claim. At the trial court level, Herrick prevailed on a motion to dismiss, successfully arguing that, under prevailing law, a three-year statute of limitations applies to claims under RPL § 339-l, thus rendering the contractor's claims untimely. The motion to dismiss was unanimously affirmed on appeal, thus representing a complete victory for Herrick’s client. The case is ELM Suspension Sys., Inc. v. 45 E. 33rd St. Condo., 201 A.D.3d 498 (1st Dep’t 2022).
New York City Synagogue – Real Estate Covenant Dispute
Successfully represented a synagogue in extinguishing restrictive covenants placed on its deed from the synagogue’s predecessor interest that were prohibiting a redevelopment project from moving forward.
New York City Church – Real Estate Covenant Dispute
Successfully represented a church in extinguishing an unsatisfied mortgage recorded against the church’s property, thus giving the church clean title.
New York City Fine Dining Restaurant – Successfully Obtained Yellowstone Injunction
Successfully obtained a Yellowstone injunction on behalf of a restaurant/nightlife establishment in Manhattan’s Meatpacking District.
Developer – Specific Performance
Successfully represented a developer in an action to specifically perform a 15+ year option to purchase a plot a land in Poughkeepsie, New York and obtained an order permitting an assigned money judgment to offset the purchase price.
Condominium Board of High-Profile Luxury Building in NYC – Construction Defect Dispute
Represented the Board of a high-profile luxury condominium building in New York City in a complex dispute with the condominium sponsor relating to construction defects.
Prominent Real Estate Family – Trust and Estate Litigation
Herrick successfully represented a member of a prominent real estate family in the arbitration of a decades-long dispute over a family trust and estate, involving multiple family members and approximately $100 million in various assets. The core arguments in the case centered on whether or not the original arbitration award purporting to govern the rights to the estate was valid. The Court ultimately ruled in favor of Herrick's client, finding that the distribution of the estate was not an arbitrable matter, denied the petition to confirm and granted our motion to vacate the award.
Private Lender – Multiple State and Federal Litigations
Represent a private lender in connection with multiple state and federal litigations related to a significant commercial property in Upper Saddle River, New Jersey.
Commercial Real Estate Lender – “Springing Member” Summary Judgment
Obtained summary judgment in New Jersey Chancery Court on behalf of a commercial real estate lender installing our client as the “Springing Member” of an LLC in default of its obligations to its lenders.
Commercial Property Owner – Summary Judgment Granted in Breach of Contract Dispute
Herrick represented the owner of commercial property in New York City in a breach of contract dispute. Our clients were sued by the former property manager who alleged the breach of an agreement to pay the former property manager a commercial brokerage leasing commission. The Herrick team obtained a total victory for our clients when, after several years of litigation, the New York State Supreme Court granted our client’s motion for summary judgment dismissing the former property manager’s complaint in its entirety.
Mitsui Fudosan and SJP Properties – 200 Amsterdam
Achieved significant victory in a high-profile, multi-year dispute over the approximately $1 billion dollar development at 200 Amsterdam—an important ruling for both Herrick clients and developers throughout New York City. Herrick represented Mitsui Fudosan and SJP Properties as co-counsel in the zoning litigation involving Article 78 and other claims relating to their development of the luxury high rise building when a neighborhood coalition of Upper West Side residents and politicians challenged the Department of Building's approval of the project and two approvals by the N.Y.C. Board of Standards and Appeals. The N.Y.S. Appellate Division unanimously reversed and ruled in favor of the developers, finding that the building permit was lawful and that the trial court should have deferred to the N.Y.C. Board of Standards and Appeals. The N.Y. Court of Appeals denied the opposition group’s motion for leave to appeal.
Chelsea Building Owner – Successful Enforcement of Surrender Agreement
Achieved a $1 million victory on behalf of a Chelsea building in an action to enforce the strict terms of a surrender agreement for prime retail space in Manhattan’s Chelsea neighborhood. On summary judgment, the Supreme Court, New York County, determined that a commercial tenant breached its contractual obligation to vacate our client’s prime, street level space, ordered the return of an unearned termination fee (including an $800,000 deposit in escrow and $200,000 cash advance), and awarded interest and attorneys’ fees.
Non-Profit Organization – Litigation against Former Board Members
Achieved an important victory on behalf of a non-profit pro-bono client asserting claims against several former board members who had used their positions of trust to loot the organization for their own personal gain by misappropriating funds from the client’s operating accounts, gaining control of the organization's Harlem apartment buildings, misappropriating rental income from those properties, and ultimately selling one of the buildings for their own benefit. Herrick successfully argued a motion for a preliminary injunction, obtaining an order from the court enjoining the defendants from holding themselves out as officers of the non-profit, and requiring them to return the organization’s apartment buildings to our client’s control.
Defending Challenge Construction of High-Rise Residential Tower
Represent owner/developer in the zoning for their development of Manhattan high rise residential condominium building, including opposing an effort to halt construction and a challenge to the project’s approval brought by local community groups.
REIT – Real Estate Litigation
Represented an affiliate of a leading REIT in winning summary judgment: (a) in an adverse possession action brought by the owners of adjacent property; and (b) in a separate real estate breach-of-contract suit arising out of an agreement sell property in Manhattan.
Defeated Zoning Challenge to Construction of Residential Tower
Successfully represented owner/developer of 32-story residential tower on Upper East Side in defeating zoning challenge involving Article 78 lawsuit brought by community groups and elected officials.
Successful Prosecution of Breach of Operating Agreement in Real Estate Partnership
Represent international real estate investment firm in dispute with partner/co-owner of commercial building on Upper West Side over a contractually-negotiated share of leasing proceeds. On summary judgment, Court awarded all monetary relief demanded and declaratory relief in client’s favor.
Zoning Resolution Dispute With Developer
Represent ground lessor in action to enforce and declare consent rights as “party-in-interest” under New York City Zoning Resolution in dispute with developer planning to construct residential tower in the “Two Bridges” neighborhood of Manhattan.
Commercial Real Estate Tenants – Pre-Discovery Summary Judgment Ruling Granting Specific Performance of Lease with Purchase Option
Represented Split Rail Holdings, LLC, tenants of a commercial real estate building in the Lower East Side and secured a victory on a pre-discovery summary judgment motion, obtaining specific performance of the lease, allowing Split Rail to purchase the property for $6.3 million. The decision was affirmed by the Appellate Division, First Department.
Luxury Residential Developer – Dispute with Investor
Representing the management company of a real estate joint venture, created to develop luxury residential properties in Miami, against claims asserted by a joint venture investor.
Real Estate Lender – Foreclosure Proceedings
Represent a New York-based lender, who provides loans to revitalize and recapitalize commercial real estate properties, in foreclosure and deficiency proceedings.
Leading Special Servicers of CMBS Debt – New Jersey Real Estate Dispute
Representing four (4) leading special servicers of CMBS debt in connection with 18 defaulted loans secured by multi-family apartment buildings located throughout New Jersey. When the principal of the borrowers abandoned the properties, Herrick applied in federal court for appointment of a receiver to manage the properties. That application was successful, and a receiver was appointed. Once the receiver was in place, Herrick then commenced foreclosure actions in state court with respect to all of the 18 loans. Judgments have been obtained in all of the foreclosure actions and over the last year, the Herrick team has utilized a number of creative strategies to pursue the clients’ interests, including facilitating the sales of a number of the properties through the receivership (with the clients receiving the proceeds of such sales), and pursuing title to the balance of the properties through foreclosures sales. This matter is ongoing.
New Jersey-based Food Manufacturer – Leasing Dispute
Representing a New Jersey-based food manufacturer in an action brought against its landlord on a commercial lease for its warehouse at in Franklin Township, New Jersey. Our client seeks damages caused by breaches of various provisions in the lease related to the preparation of the previously-vacant building for occupancy and the build out of office space in the warehouse. The landlord filed a counterclaim asserting that our client breached the lease by applying a purportedly defective coating on the warehouse floor, and also seeking attorney’s fees and unspecified indemnification costs. This matter is ongoing.
New Jersey-based Nursing Home Facility – Leasing Dispute
Represented the defendants in a dispute where the parties had contracted for a long-term lease of a nursing home facility, representing several million dollars of rent. After our clients ultimately decided not to move forward with the lease, they negotiated a settlement that included a general release with the owner of the facility. Notwithstanding that, the facility owner subsequently filed suit in the Superior Court of New Jersey for eight separate causes of action, including breach of contract, tortious interference, and fraud in the inducement. In its complaint, the plaintiff also argued that the release was unenforceable because it was procured by economic duress. Herrick filed a motion to dismiss, arguing that the plaintiff did not plead the existence of economic duress at the level necessary to set aside the release. The court agreed with Herrick, dismissed the complaint without prejudice, and ordered that any refiled complaint contain specific facts with respect to the exact nature and extent of the economic duress at the time the release was given. This was a major victory in that there are very few New Jersey cases where a release has been enforced on a motion dismiss in the face of a claim of economic duress.
Developer – Successful Defense in Breach of Contract and Fraud Dispute
Herrick successfully defended Muss Development in the Appellate Division, First Department appeal of Princes Point LLC, et al. v. Muss Development LLC et al., a case involving the plaintiff's breach of a $36 million contract to purchase Princes Point, a 23-acre waterfront parcel of land on the south shore of Staten Island, from Muss. The First Department unanimously confirmed Herrick's earlier Supreme Court, New York County victory for Muss, which entitles the real estate developer to retain the plaintiffs' approximately $4 million deposit plus other fees totaling nearly $1 million. In doing so, the court delved into an area where there was a dearth of case law in New York – namely, whether a prospective real estate purchaser anticipatorily breaches a sale contract by commencing an action against the seller for rescission before the closing date, and whether, in that event, the seller is required to show that it was ready, willing, and able to complete the sale. The court held that the plaintiff had anticipatorily breached the contract and that Muss is entitled to keep the deposit and other significant fees without having to show that it was ready, willing and able to close. Once there was a breach, there was no need to spend time and money preparing for a closing that was not going to happen.
Brooklyn Bridge Park Developers – Dismissal of Lawsuits Seeking to Halt Construction
Successfully defended the developers of a $320 million Brooklyn Bridge Park hotel and condominium project, defeating two lawsuits filed by activists seeking to halt construction of the project. In a decision of significance to the New York real estate industry, Herrick secured an order in New York state court denying plaintiffs’ motions for both an injunction and a declaratory judgment that the planned buildings exceeded height limitations specified in the project’s governing documents. The court found that the development complied with the law and further ruled the legal challenge barred by the statute of limitations for bringing an Article 78 proceeding. Herrick then defeated a second lawsuit claiming to assert a different land use violation, securing dismissal of the complaint on the grounds of failure to exhaust administrative remedies, statute of limitations and res judicata. Herrick continues to represent the clients on the plaintiffs’ appeal.
Rent Stabilization Association – NYC Water Board Bill Credit Lawsuit
Represented the Rent Stabilization Association and individual building owners in high profile litigation challenging a proposal by New York City Water Board, and the New York City Department of Environmental Protection to subject landlords of large residential properties to a water bill rate hike in order to fund a one-time credit for the owners of smaller, one-to-three-family homes. In both the trial court, and before the Appellate Division, First Department, Herrick secured rulings blocking the levying of an estimated $76 million in rate hike charges which, we argued, would set a dangerous precedent of instituting arbitrary bill credits and rate hikes, made regardless of economic need and without any rational water-related purpose. Notwithstanding that we convinced two separate courts and a majority of the total judges that heard the case (6 out of 11, including the Chief Judge of the State’s highest court) of the merits of our position, a divided New York Court of Appeals overturned the lower court decisions and declared that the appellants may implement the bill credits and rate increase. Shortly after the decision was delivered, however, the appellants issued a public notice proposing to implement the bill credits, while repealing the planned rate increase. Accordingly, this case demonstrates that although it’s difficult to challenge the rationality of determinations by public agencies, even an ultimately unsuccessful legal challenge can cause public agencies to reexamine their conduct.
Resources
Developer – Dispute over Down Payment Favorably Resolved
Represented a real estate developer in litigation with the seller of a Midtown Manhattan property over the return of the client’s multimillion dollar down payment on the property after the seller materially breached a contract of sale between the parties by failing to cure violations at the property as required, refusing to allow our client access to the property in violation of the agreement, and improperly noticing a “time of the essence” closing. The dispute was resolved favorably under a settlement that recovered significant damages for the client.