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'Melendez/Bochner': No Guarantee the Guaranty Law Survives Constitutional Scrutiny Image

'Melendez/Bochner': No Guarantee the Guaranty Law Survives Constitutional Scrutiny

Claude G. Szyfer & Daria D. Anichkova

After nearly four years of litigation, the Second Circuit held recently that a small commercial landlord lacked standing to seek declaratory relief against the City of New York challenging the Guaranty Law under the Contracts Clause of the U.S. Constitution.

Features

Individual Liability of Condominium Sponsor's Principals Image

Individual Liability of Condominium Sponsor's Principals

Stewart E. Sterk

When are the principals of a condominium sponsor individually liable for harms suffered by purchasers? In Board of Managers of 570 Broome Condominium, the First Department declined to dismiss a condominium board's fraud and breach of fiduciary claims against individual defendants.

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'Huguenot LLC v. Megalith Capital Group Fund I, L.P.': A Tutorial On Contract Liability for Real Estate Purchasers Image

'Huguenot LLC v. Megalith Capital Group Fund I, L.P.': A Tutorial On Contract Liability for Real Estate Purchasers

William J. Geller & Robert J. Braverman

In June 2024, the First Department decided Huguenot LLC v. Megalith Capital Group Fund I, L.P., which resolved a question of liability for a group of condominium apartment buyers and in so doing, touched on a wide range of issues about how contracts can obligate purchasers of real property.

Features

Be Careful What You Stip For: 'Liggett v. Lewitt Realty LLC' Image

Be Careful What You Stip For: 'Liggett v. Lewitt Realty LLC'

Ethan R. Cohen

The ruling from New York's highest state court, although straightforward on its face, has important implications for both long-existing settlement agreements and when considering drafting future agreements settling disputes in the context of the Rent Stabilization Law.

Features

New York's Good Cause Eviction Law: An Overview and Impact Analysis Image

New York's Good Cause Eviction Law: An Overview and Impact Analysis

Jennifer L. Alexander

The effectiveness of the Good Cause Eviction Law will largely depend on its implementation and the local adaptations that municipalities outside New York City decide to enact. Both landlords and tenants should stay informed about the specifics of how this law is applied in their respective locales and how it will be interpreted and handled in the judicial system.

Features

Landlord Liable for Retaliating Against Maker of False Discrimination Claim Image

Landlord Liable for Retaliating Against Maker of False Discrimination Claim

Stewart E. Sterk

What responses are available to a landlord after a false claim of discrimination? The Court of Appeals faced that issue and held that a landlord may not seek to recover the damages it has suffered as a result of a false discrimination claim, so long as the claim was made in good faith.

Features

Supreme Court Limits Impact Fees Image

Supreme Court Limits Impact Fees

Stewart E. Sterk

In April, the U.S. Supreme Court decided Sheetz v. County of El Dorado, holding that legislatively-imposed fees on development are subject to the same constitutional scrutiny as fees imposed by administrative bodies. The Court's decision may have an impact on fees New York municipalities impose on developers in lieu of developer-provided parkland.

Features

When Is A Pretext By A Municipality A Bar To Land Use Approvals? Image

When Is A Pretext By A Municipality A Bar To Land Use Approvals?

Steven M. Silverberg

Recently, there have been several instances in which municipalities have been challenged by property owners claiming that the municipal boards have utilized delaying tactics and other actions as a pretext to prevent development of their properties.

Features

Guarantor Liability for Post-Window-Period Rent Image

Guarantor Liability for Post-Window-Period Rent

Cheryl Ginsburg

In a case of first impression, the Appellate Division, First Department recently addressed a split in the decisions of the lower courts as to the scope of the New York City Guaranty Law.

The Stranger to the Deed Rule Image

The Stranger to the Deed Rule

Stewart E. Sterk

In 1987, a unanimous Court of Appeals reaffirmed the vitality of the "stranger to the deed" rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Daniello v. Wagner, decided by the Second Department on November 29th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals' message, suggesting that the rule needs re-examination.

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