Morrison Cohen Defeats Injunction Bid Over Madison Avenue Loan Foreclosure

On June 15, 2026, in Asherian, et al. v. Aharonoff, the Supreme Court of the State of New York, New York County denied plaintiffs' attempt to block a UCC foreclosure of membership interests belonging to a defaulted borrower. The decision is a win for Morrison Cohen client, commercial real estate investor and developer Abraham Talassazan.

The case centers on 295 Madison Avenue, a midtown Manhattan office building owned by plaintiffs and the defendant through various entities. The dispute traces back to a capital call that the plaintiffs failed to fund in order to conclude a favorable refinancing that Mr. Talasazzan had obtained. Rather than dilute plaintiffs’ equity, the defendants arranged for an affiliated lender to lend the money needed to refinance the mortgage debt. Plaintiffs’ company pledged its stake as collateral for the loan. When the company later failed to repay the loan, the lender began to foreclose on the collateral through a sale under the Uniform Commercial Code.

The plaintiffs sued, claiming the loan was not properly authorized and amounted to self-dealing by the defendants, and obtained a temporary restraining order. 

The Court quickly lifted the restraining order and declined to issue a preliminary injunction, adopting Morrison Cohen’s arguments that the loan was authorized under the company's operating agreement and was made in the company’s best interest.  Moreover, the court found that the plaintiffs had failed to show irreparable harm to justify an injunction. With the restraining order lifted and the injunction denied, the lender can move forward with the foreclosure sale.

The Morrison Cohen team is led by Y. David Scharf, Christopher Milito and Loren Scolaro.