In a high-profile suit involving the City of New York, the NYC Department of Buildings, a former mayor, several lobbying firms and some of NYC's largest real estate developers, Senior Counsel John Darminio decisively secured a dismissal of our client, a large New York City commercial real estate consulting firm.
The Plaintiffs, owners of property in the East Village, brought this lawsuit, the latest iteration of a decades-long fight, for tortious interference of existing and prospective business relations. Plaintiffs alleged that the defendants worked in concert to devalue the property, stall building permits, and force the building into foreclosure. Plaintiffs allege damages of up to $305 million, and our client was recently served with a $3 million policy limits demand.
Plaintiffs failed to take a default judgment against our client for well over a year and then filed an Amended Complaint, at which point we were assigned the file from another firm and immediately filed this motion. In its decision, the Court agreed with our argument that Plaintiffs failed to timely take entry of judgment within one year of our client’s default under CPLR 3215-c. The Court rejected Plaintiffs' arguments for failing to do so (e.g., law office failure, being preoccupied with motion practice against all the other defendants, and delays from Covid), further holding that Plaintiffs’ claims were not “saved” by filing the Amended Complaint nor could it recommence the action pursuant to CPLR 205-a if it were dismissed.
While Plaintiffs may file a new complaint and appeal the dismissal, this puts our client strategically in the best position possible. Congrats to John!
