Morrison Cohen Secures Complete Dismissal for Churchill Real Estate Holdings in Commercial Division Dispute

Morrison Cohen successfully represented Churchill Real Estate Holdings LLC in securing a full dismissal of all claims asserted by JLJ Capital LLC in a Commercial Division dispute arising from a $4 million mezzanine loan participation.

In a Decision and Order dated April 6, 2026, Justice Anar Rathod Patel of the New York Supreme Court, Commercial Division (Part 45), granted Churchill’s motion to dismiss the Amended Complaint in its entirety, adopting each of Morrison Cohen’s core arguments and bringing the litigation to a complete close at the pleading stage.

The case stemmed from a 2019 participation agreement under which JLJ claimed a 20 percent interest in a $20 million mezzanine loan connected to a Manhattan property. Following earlier disputes between the parties, including prior litigation in 2022, JLJ brought meritless claims for fraudulent inducement, rescission of the participation agreement and unjust enrichment.

The Court dismissed all claims, finding that the alleged misrepresentations were duplicative of the contract, that JLJ failed to plead justifiable reliance as a sophisticated party, and that JLJ did not allege cognizable damages. The Court also rejected JLJ’s rescission and unjust enrichment claims as legally insufficient and duplicative of the governing agreement.

The Morrison Cohen Litigation team was led by Partners Y. David Scharf, Gayle Pollack and Amber R. Will.