Morrison Cohen Wins Reversal of Highbridge Entities’ Dismissal of Counterclaim for Breach of Contract

December 12, 2016 – The Supreme Court, Appellate Division, First Department unanimously reversed a decision dismissing Highbridge Entities' second counterclaim for breach of contract and return of its deposit from Highbridge House Ogden LLC.

The litigation originated out of an aborted sale of real property, after Highbridge Entities discovered that the seller did not hold title to the first three floors of the building. The seller moved for summary judgment dismissing the Highbridge Entities' counterclaims for specific performance and breach of contract. The trial court granted the seller's motion, holding that the Highbridge Entities had defaulted.

The Appellate Court reversed the dismissal of the second counterclaim for breach of contract and stated “the motion court erred in finding that the restricted remedies clause applied in this case. Alternatively, even if the restricted remedies clause controlled the resolution of this dispute, the motion court was incorrect in finding that the defendant buyer [Highbridge Entities] defaulted.”