Clark Construction Corp. v. BLF Realty Holding Corp.

26 Misc. 3d 523
CourtNew York Supreme Court
DecidedNovember 5, 2009
StatusPublished

This text of 26 Misc. 3d 523 (Clark Construction Corp. v. BLF Realty Holding Corp.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clark Construction Corp. v. BLF Realty Holding Corp., 26 Misc. 3d 523 (N.Y. Super. Ct. 2009).

Opinion

OPINION OF THE COURT

Edward H. Lehner, J.

In this action tried before me without a jury, the parties have heretofore had at least 18 motions decided by other justices of this court and three decisions by the Appellate Division (300 AD2d 49 [2002]; 28 AD3d 367 [2006]; 54 AD3d 604 [2008]). As a consequence of these decisions, the only remaining plaintiff with a triable cause of action is Clark Construction Corporation (Clark), the claims of the individual plaintiffs (which sought relief similar to that requested by Clark) having been dismissed on parol evidence grounds.

The basic facts in controversy are set forth in the prior decisions with the only claims surviving for trial being Clark’s action. Clark has occupied the second floor (the unit) of the subject building at 117-119 Hudson Street (the building) since 1993. In the complaint it alleges that in 1999 its president, Christopher Clark, came to an oral agreement with defendant William Fleischer, the president of BLF Realty Holding Corp., the then owner of the building, pursuant to which BLF would “perfect an offering plan to convert the premises and property to condominium ownership, to take all necessary action to have a condominium plan declared effective” (1Í 58), and to sell the unit to Clark for $1,344,000 (If 12). The relief sought is a permanent injunction restraining defendants from transferring the unit to any third party, and a direction that defendants submit an

“offering plan to the Department of Law of the State of New York and to take all necessary steps for such offering plan to be accepted for filing by the Department of Law and for such plan to be declared effective, and upon such declaration of effectiveness, to sell the [unit] to plaintiffs in accordance with the terms of the agreement between” the parties.

In its latest decision, the Appellate Division stated “that there are issues of fact as to whether the oral contract with Clark Construction was a private or public offering” (54 AD3d at 605). However, while Clark’s counsel acknowledged having found no case where a court directed a building owner to record [525]*525a condominium declaration and then prepare and file an offering plan, here the Appellate Division reversal (28 AD3d 367 [2006]) of Justice Kornreich’s finding that such direction “would be impractical because it would require constant supervision . . . [and] would require the Court to determine what is an acceptable offering plan” (2004 NY Slip Op 30314[U], *7 [Nov. 24, 2004]) is an indication that the appellate court believes that such a direction could properly be made.

From the evidence and the testimony at trial, it is clear that each of the three plaintiffs contemplated a public offering and a sale to them pursuant thereto. It was evident that these three plaintiffs were sophisticated businessmen and did not put any of their alleged agreements in writing (Clark acknowledging that it consulted counsel on the issue) because they believed that any agreement to purchase in connection with a public offering would not be enforceable until a filing of an offering plan was accepted by the Attorney General (see tr at 215).

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Related

Kralik v. 239 East 79th Street Owners Corp.
832 N.E.2d 707 (New York Court of Appeals, 2005)
Council for Owner Occupied Housing, Inc. v. Abrams
531 N.E.2d 627 (New York Court of Appeals, 1988)
Whalen v. Lefkowitz
324 N.E.2d 536 (New York Court of Appeals, 1975)
Clark Construction Corp. v. BLF Realty Holding Co.
28 A.D.3d 367 (Appellate Division of the Supreme Court of New York, 2006)
Nesbitt v. Penalver
40 A.D.3d 596 (Appellate Division of the Supreme Court of New York, 2007)
Clark Construction Corp. v. BLF Realty Holding Corp.
54 A.D.3d 604 (Appellate Division of the Supreme Court of New York, 2008)
State v. Fashion Place Associates
224 A.D.2d 280 (Appellate Division of the Supreme Court of New York, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
26 Misc. 3d 523, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clark-construction-corp-v-blf-realty-holding-corp-nysupct-2009.