News

May 22, 2018 News

Morrison Cohen Obtains Dismissal of Case Concerning Investment in Brill Building

May 22, 2018 – Morrison Cohen successfully obtained the complete dismissal of a case brought in the Commercial Division of the Supreme Court of the State of New York, New York County against its clients relating to a failed investment in the landmark Brill Building located at 1619 Broadway, New York, New York. 

The plaintiffs in the action alleged breach of contract and fraud claims against the defendants concerning a personal guaranty and purported loan relating to the plaintiffs’ investment in a consortium that purchased a minority interest in the entities owning the Brill Building in 2016, prior to the subsequent loss of the property in foreclosure proceedings.

In a decision rendered from the bench after oral argument on May 14, 2018 and supplemented by a further written decision on May 16, 2018, Justice O. Peter Sherwood granted the defendants’ motion to dismiss in its entirety.  In so doing, the Court, among other things, held that documentary evidence precluded the plaintiffs’ claims that that there was a breach of a personal guaranty, that their investment had been converted into a loan and that there had been any material misrepresentations or detrimental reliance. 

The case is Brill SVG 5 LLC et al. v. BB Capital NY LLC et al. (Index No. 650715/2017).  For a copy of the supplemental decision and order, please click here.

The Morrison Cohen team was comprised of Y. David Scharf and Jay R. Speyer.