December 1, 2017 News

Morrison Cohen Obtains Dismissal of Fraudulent Inducement Claims in $140 Million Sale

December 1, 2017 -- Morrison Cohen partner Christopher Milito secured the dismissal of fraud and indemnification claims arising out of a $140 million purchase and sale agreement for the Greystone Building, a historic Upper West Side residential property.  Plaintiff-buyer alleged that the Firm’s client had intentionally misrepresented potential claims against the building and sought $11.5 million in damages.  At a hearing of the motion before Justice Robert R. Reed, Mr. Milito argued, inter alia, that (i) the buyer had waived its ability to bring indemnification claims under the agreement’s complex claims limitation provisions; and (ii) the alleged misrepresentations could not support a fraudulent inducement claim as they were contained within the body of the sale agreement.  Justice Reed adopted the Firm’s arguments and ruled from the bench, dismissing the entirety of the buyer’s complaint and denying buyer’s request to amend and re-plead their claims.

The case was filed in New York County Supreme Court under the caption Broadway Greystone LLC v. Greystone Owner LLC, Index Number 152210/2016.  Christopher Milito and Michael Mix handled the matter.