Battery Park City Auth. v. Pier A Battery Park Assoc., LLC

2025 NY Slip Op 31719(U)
New York Supreme Court, New York County·Decided May 12, 2025·No. Index No. 156217/202·Unpublished

Opinion

Battery Park City Auth. v Pier A Battery Park Assoc., LLC 2025 NY Slip Op 31719(U) May 12, 2025 Supreme Court, New York County Docket Number: Index No. 156217/202 Judge: Lyle E. Frank Cases posted with a "30000" identifier, i.e., 2013 NY Slip Op 30001(U), are republished from various New York State and local government sources, including the New York State Unified Court System's eCourts Service. This opinion is uncorrected and not selected for official publication. INDEX NO. 156217/2022 NYSCEF DOC. NO. 230 RECEIVED NYSCEF: 05/12/2025

SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY PRESENT: HON. LYLE E. FRANK PART 11M Justice ---------------------------------------------------------------------------------X INDEX NO. 156217/2022 BATTERY PARK CITY AUTHORITY D/B/A THE HUGH L. CAREY BATTERY PARK CITY AUTHORITY, 01/17/2025, MOTION DATE 01/18/2025 Plaintiff, MOTION SEQ. NO. 009 010 -v- PIER A BATTERY PARK ASSOCIATES, LLC,PAUL LAMAS, PETER POULAKAKOS, NEW YORK CITY DECISION + ORDER ON WATERFRONT DEVELOPMENT FUND II, LLC MOTION Defendant. ---------------------------------------------------------------------------------X

The following e-filed documents, listed by NYSCEF document number (Motion 009) 191, 192, 193, 194, 195, 196, 197, 205, 207, 208, 209, 210, 217, 218, 219, 220 were read on this motion to/for RENEW/REARGUE/RESETTLE/RECONSIDER .

The following e-filed documents, listed by NYSCEF document number (Motion 010) 198, 199, 200, 201, 206, 211, 212, 213, 214, 215, 216 were read on this motion to/for RENEWAL .

Upon the foregoing documents, the defendants’ motions are denied.

Background

This is a commercial landlord-tenant case centered on a historic building located on Pier

A at 22 Battery Place. The building in question is owned by New York City and had been leased

to Pier A Battery Park Associates, LLC (“Tenant”) under an agreement with the Battery Park

City Authority (“BPCA”). Paul Lamas and Peter Poulakakos (collectively, the “Guarantors”,

together with the Tenant “Defendants”) signed a Good Guy Guaranty agreement in favor of the

BPCA. Tenant granted New York City Waterfront Development Fund II, LLC (the “Fund”) a

security interest in its leasehold estate. The Fund also loaned the BPCA $16.5 million related to

the proposed redevelopment of Pier A. In April of 2020, during the COVID-19 pandemic,

156217/2022 BATTERY PARK CITY AUTHORITY D/B/A THE HUGH L. CAREY BATTERY PARK Page 1 of 4 CITY AUTHORITY vs. PIER A BATTERY PARK ASSOCIATES, LLC ET AL Motion No. 009 010

1 of 4 [* 1] INDEX NO. 156217/2022 NYSCEF DOC. NO. 230 RECEIVED NYSCEF: 05/12/2025

Tenant sent a letter to BPCA and the Fund claiming to have permanently closed its business and

operations in the Pier A building. In July, Tenant’s counsel sent a letter to the BPCA stating that

the April letter constituted formal notice that the leasehold was surrendered. This purported

surrender was rejected by both the BPCA and the Fund.

In July of 2022, the BPCA filed this underlying suit, asserting claims of breach of the

lease and seeking eviction and a declaratory judgment that the lease had been terminated based

on Tenant’s default under the lease. They also sought to hold the Guarantors liable under the

guaranty. Then in March of 2024, the Fund moved to substitute itself as plaintiff in this matter,

on the grounds that the BPCA had assigned their rights regarding several of the claims in this

proceeding to them on January 03, 2024 (the “Assignment”). This motion was granted. Related

to the Assignment is a Settlement Agreement between the BPCA and the Fund, which has been

partially disclosed. As part of this Settlement Agreement, the BPCA made a payment of $1.4

million dollars to the Fund alongside the assignment of certain of their claims against the Tenant

and Guarantors in this action.

Standard of Review

A party may bring a motion to renew pursuant if it is “based upon new facts not offered

on the prior motion that would change the prior determination” or if it can demonstrate that

“there has been a change in the law that would change the prior determination.” CPLR

§ 2221(e)(2). When bringing a motion to renew based upon new facts, the movant must show

“reasonable justification for the failure to present such facts on the prior motion.” CPLR

§ 2221(e)(3). Renewal is meant to be “granted sparingly” and the moving party must show that

they did not fail to exercise due diligence. Perretta v. New York City Tr. Auth., 230 A.D.3d 428,

432 (1st Dept. 2024). A motion to renew “must be based upon additional material facts which

156217/2022 BATTERY PARK CITY AUTHORITY D/B/A THE HUGH L. CAREY BATTERY PARK Page 2 of 4 CITY AUTHORITY vs. PIER A BATTERY PARK ASSOCIATES, LLC ET AL Motion No. 009 010

2 of 4 [* 2] INDEX NO. 156217/2022 NYSCEF DOC. NO. 230 RECEIVED NYSCEF: 05/12/2025

existed at the time the prior motion was made, but were not then known to the party seeking

leave to renew.” Venuti v. Novelli, 179 A.D.2d 477, 478 (1st Dept. 1992).

Discussion

In these two motions, the Defendants seek to renew their opposition to the motion filed

by the Fund to substitute itself for the BPCA in this action based on the Assignment. The new

facts offered concern the Settlement Agreement and BPCA Board minutes, which did not

become available until after the deadline for opposition on the original motion to substitute.

Defendants argue that the Assignment is invalid because it was not approved by the BPCA

Board, pointing to the public meeting minutes that do not specifically address any discussion of

the Assignment. The Fund opposes and argues that Board approval for the Settlement Agreement

was not needed, that Defendants have not shown that regardless of such a requirement, Board

approval of the two agreements was not granted. They also point out that in the months leading

up to the Assignment and Settlement Agreement the Board entered into two privileged executive

sessions to discuss all pending litigation and that the BPCA has consistently maintained

throughout this proceeding that the settlement was authorized.

The Assignment was signed by the then-General Counsel for the BPCA, Ms. Goldenberg,

who is authorized to sign instruments and manage litigation on behalf of the BPCA. There is an

affirmation from the current Acting General Counsel for the BPCA that states that Ms.

Goldenberg was authorized by the BPCA bylaws to execute the Assignment and Settlement

Agreement. Defendants have not shown that the BPCA was required to specifically approve the

Assignment through publicly available meeting minutes, nor have they established that the

BPCA does not authorize either agreement. Failure on a motion to renew to show how the new

156217/2022 BATTERY PARK CITY AUTHORITY D/B/A THE HUGH L. CAREY BATTERY PARK Page 3 of 4 CITY AUTHORITY vs. PIER A BATTERY PARK ASSOCIATES, LLC ET AL Motion No. 009 010

3 of 4 [* 3] INDEX NO. 156217/2022 NYSCEF DOC. NO. 230 RECEIVED NYSCEF: 05/12/2025

facts would have changed the prior motion’s outcome is grounds for denying the renewal. Solo

Group LLC, Series 9 v. Harris, 213 A.D.3d 607, 608 [1st Dept. 2023].

Furthermore, the Defendants do not have standing to challenge the Assignment. In order

to have standing to challenge an agreement, “a nonparty to the contract must either suffer direct

harm flowing from the contract or be a third-party beneficiary thereof.” Decolator, Cohen &

DiPrisco, LLP v. Lysaght, Lysaght & Kramer, P.C., 304 A.D.2d 86, 90 [1st Dept. 2003]. The

Free access — add to your briefcase to read the full text and ask questions with AI

Battery Park City Auth. v. Pier A Battery Park Assoc., LLC, 2025 NY Slip Op 31719(U) (N.Y. Super. Ct. 2025).

2025 NY Slip Op 31719(U) (Battery Park City Auth. v. Pier A Battery Park Assoc., LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Venuti v. Novelli
179 A.D.2d 477 (Appellate Division of the Supreme Court of New York, 1992)
Decolator, Cohen & DiPrisco, LLP v. Lysaght, Lysaght & Kramer, P.C.
304 A.D.2d 86 (Appellate Division of the Supreme Court of New York, 2003)