December 4, 2017 News

Morrison Cohen Obtains Dismissal of Claims Arising from Failed Fifth Avenue Assemblage

December 4, 2017 – Morrison Cohen partner Christopher Milito secured the dismissal of pass-through claims against the manager and member of a development company involved in a failed three-property assemblage on Fifth Avenue in midtown Manhattan.  Although the three sites had been secured (for over $60 million), changed economics rendered the development plan not feasible.  Plaintiff sued a member of the Firm’s client individually, alleging that he had breached his fiduciary duty to the plaintiff co-venturer by transferring the project to a related entity.  Mr. Milito argued that the member/manager owed no personal duty to the alleged co-venturer and thus could have no personal liability.  Justice Barry R. Ostrager of the New York County Supreme Court, Commercial Division agreed with the Firm’s arguments and dismissed plaintiff’s claims.

The case was filed under the caption LPJA, LLC v. IDM Fifth Avenue Development LLC, Index Number 653287/2016.  Christopher Milito and Jina Moon handled the matter.