Did Son [Im]properly Divest Father of Interests in LLCs? Battles between fathers and sons are found in Greek mythology (Zeus and Cronus). And, as a recent case illustrates, continue to this day in a somewhat different manner. Jacob Harounian owned and operated a rug business called J. Harounian Oriental Rug Center. Jacob eventually asked his son, Mark Harounian, to help him run JHORC. Jacob thereafter gave Mark a 40% ownership interest in JHORC. In addition, Jacob formed a partnership with Mark and Mark’s two sisters called JAM Realty Co. to take title to a property located on 25th Street in… Read more

Was Tenant Permitted to Operate Unlicensed Cabaret? Use clauses in commercial leases are intended to unambiguously define and delineate the business purposes contemplated for the space. But, as a recent case illustrates, the landlord and tenant may disagree on whether or not the actual use is permitted. 39-50 24th St. Realty Corp, as landlord, and Ol’ Bridge Cafe Inc., as tenant, entered into a commercial lease agreement for 39-48/50 24th Street, Ground Floor Store, Long Island City, for a term of five (5) years commencing February 1, 2016. The premises was to be utilized as a restaurant. Pursuant to the… Read more

Was the Agreement Sufficient to Satisfy the Statute of Frauds? Members of different families often combine forces and funds to purchase real estate together. When differences arise, they sometimes resolve those disputes with a settlement agreement that seems effective at the time—but is later subject to challenge. And, as a recent case illustrates, a “signed and sealed” settlement agreement intended to resolve inter-family disputes may not be enforceable when subject to judicial scrutiny. Shlomo Ehrenreich and his father allegedly partnered with Joel Israel, Amrom Israel, and Michael Israel in various real estate ventures over a period of several years and… Read more

But Who Is Bound And Is Dispute Arbitrable? Many commercial agreements contain what appears to be an unambiguous clause mandating the arbitration of all disputes. But, as a recent case illustrates, a Court nevertheless may be called upon to determine who is bound to arbitrate and what issues are covered by that mandate. On September 1, 2016, Bromberg & Liebowitz entered into an agreement with Pat O’Brien to purchase her accounting practice. The agreement provided that Pat O’Brien would provide consulting services to the practice during a transition period and that Jennifer O’Brien would work for the practice for at… Read more

Can a TIC Oust Other TICs With the Passage of Time? Scene set: Family members jointly own, as tenants-in-common, a residential property. Over time their respective interests pass to their descendants by deed or operation of law. But one of the family members allegedly occupied the property for more than ten years to the exclusion of her kinfolk. Did the successor to the sole occupier of the home obtain title by his predecessor’s adverse possession? The 169 MLS Realty Corporation sued, among others, One 69 Skill Corporation seeking a judgment declaring that MLS was a tenant in common to an… Read more

Customer Assaulted in Spontaneous Imbroglio In a supermarket on a Sunday afternoon, a shopper is hit in the face by a can of food thrown in the course of a sudden dispute between two other customers. Was the store liable to the innocent victim for negligence in failing to thwart the altercation? Lydia Arroyo claimed that, while shopping at an International Compare Food International store, she was struck in the face by a can thrown by Johan Gonzalez, a customer in the store. The store’s negligence allegedly caused her to sustain serious injuries. International moved for summary judgment dismissing Arroyo’s… Read more

Who Was At Fault Where Both Violated the Law? A large part of our tort liability jurisprudence addresses the threshold question of “fault”. But, as a recent automobile collision case illustrates, the “fickle finger of fault” may point in both directions. Two cars collided in the westbound right lane of Montauk Highway in Copaigue, New York. Just prior to the accident, Diana Lopez was exiting a parking lot with her vehicle half on the apron and half in the right lane in order to cross over Montauk Highway and make a left turn. Christopher Ceravino was traveling westbound on Montauk… Read more

Was Owner Liable For Personal Injury Claimed The “storm in progress” rule protects real property owners from sidewalk-related “slip and fall” claims until a reasonable amount of time after rain or snow abates. But, as a recent case illustrates, different rules apply where the weather-related accident takes place inside the building while it is raining outside. Woon Yin Kwan resides at 20 Confucius Plaza located in New York County. The building is owned by Chinatown Apartments, Inc. and managed by Tudor Realty Services Corp. An accident occurred on a rainy day when Kwan and her daughter, Kate Lee, exited a… Read more

Was Damage Caused by Removal of Tree? Some disputes between neighbors are vindictive. Some cases are retaliatory. And, as a recent small claims proceedings that ended up in an appellate court split-decision demonstrates, some actions are simply petty. Ksenia Benjaminov brought a small claims action to recover $5,000, alleging that her concrete patio and fence were damaged by the roots of a tree located on the adjacent property of Ron Zhong Zheng. At a nonjury trial, it was established that Zheng had purchased his property in January of 2016 and had since removed the offending tree. The tree had already… Read more

Was There Liability for Almost $1m Façade Repair? The owner of an apartment in a residential co-op has every right to sue the board and managing agent for a perceived breach of the proprietary lease or for breach of fiduciary duty. But sustaining a claim may be easier said than done. And, as a recent case illustrates, a shareholder’s claim arising out of an almost one million dollar façade repair was tested at the outset by several threshold legal defenses. Bernard Weinstein was a resident in a cooperative apartment building owned by 12282 Owners’ Corp. Weinstein asserted claims against the… Read more