Helmsley-Spear, Inc. v. Westdeutsche Landesbank Girozentrale

721 F. Supp. 43, 1989 U.S. Dist. LEXIS 9549, 1989 WL 111200
CourtDistrict Court, S.D. New York
DecidedAugust 16, 1989
DocketNo. 86 Civ. 7759 (RWS)
StatusPublished
Cited by2 cases

This text of 721 F. Supp. 43 (Helmsley-Spear, Inc. v. Westdeutsche Landesbank Girozentrale) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Helmsley-Spear, Inc. v. Westdeutsche Landesbank Girozentrale, 721 F. Supp. 43, 1989 U.S. Dist. LEXIS 9549, 1989 WL 111200 (S.D.N.Y. 1989).

Opinion

OPINION

SWEET, District Judge.

Defendants Westdeutsche Landesbank Girozentrale (“West LB”), Bayerische Lan-desbank Girozentrale, Hessische Landes-bank Girozentrale, Landesbank Rheinland-Pfalz und Saar International SA, and Dresdner Bang AG (collectively, the “Banks”) and defendants Deutsche Anla-gen-Leasing GmbH (“DAL”), DAL Multinational Leasing GmbH (“DALM”), N.P. Holding N.V. and Nova-Park New York Inc. N.V. (“NPNY”) have moved pursuant to Rules 11 and 56, Fed.R.Civ.P. to strike the Amended Complaint of plaintiff Helms-ley-Spear, Inc. (“Helmsley-Spear”) and for partial summary judgment dismissing the second and third claims of that Amended Complaint. Helmsley-Spear has cross-moved for summary judgment on the same causes of action. For the reasons set forth below, the Banks’ motion will be granted, and the second and third causes of action in the Amended Complaint dismissed.

Prior Proceedings

The history of this litigation is contained in the opinion rendered on July 14, 1988, 692 F.Supp. 194 (the “July 14 Opinion”), corrected by the order of July 25, the order denying reargument of October 12, 1988, and the order of February 16, 1989 granting the motion of Helmsley-Spear to amend its complaint. Familiarity with the orders and opinions is assumed.

The Amended Complaint was filed on February 24,1989, adding two claims based on the cancellation provision of the Broker[44]*44age Agreement between the parties, causes of action which had their origin, unfortunately as it turns out, in the July 14 Opinion. The Amended Complaint was not signed.

The Banks have moved to dismiss these new causes, to impose Rule 11 sanctions and Helmsley-Spear has moved for judgment on its behalf on the same causes. The motions were heard and fully submitted on May 19, 1989.

The Facts

The travail surrounding the effort to rehabilitate and sell the Gotham Hotel at 700 Fifth Avenue (the “Gotham” or the “Property”) has been detailed in previous findings, none of which are altered by the submissions in connection with these motions. Those findings are therefore adopted here and will be repeated only to place this decision in the context of the events of 1984 and 1985 which according to Helmsley-Spear give rise to the second and third causes of action.

After gaining control of the Gotham, the Banks entered into an agreement formalized on October 1, 1984 (the “Agreement”) under which Helmsley-Spear received the exclusive right to serve as broker in the sale of the Property. The Agreement expired by its terms on February 22, 1985 although it contained a self-executing extension period which extended the termination date to April 23, 1985. Payments were made to Helmsley-Spear in accordance with the Agreement.

Incentive payments were to be received by Helmsley-Spear upon the signing of a “sale contract” and a “sales agreement (Paragraph 14) which shall have been duly executed during the term of this [Brokerage] Agreement.” There is no dispute between the parties as to the terms of the Agreement. Helmsley-Spear’s right to the fees turned upon the execution of a contract of sale covering the Property during the term of the Agreement, an event which for a host of reasons previously detailed, never occurred.

The Agreement also provided that cancellation of the Agreement by the Banks during the term of the Agreement would result in a $300,000 payment to Helmsley-Spear. It was this provision which was noted in the July 14 Opinion which has given rise to the subsequent proceedings and the Amended Complaint.

Early in February 1985 for their own purposes and on the suggestion of their counsel, the Banks concluded that it would be improvident to enter into a contract of sale which, given the complicated nature of the history of the Property, including pending litigation, would necessarily contain a number of representations, warranties and conditions difficult to predict and fulfill. Dr. Weiss, responsible for determining the Banks’ position, determined that “a contract of sale would amount to little more than an option for the purchaser and that it would be prudent for the Banks to require a simultaneous contract and closing.” This position was conveyed to Helmsley-Spear in February prior to the expiration date of the Agreement.

No protest or complaint was lodged at the time by Helmsley-Spear at this change of position which is now alleged to constitute an anticipatory breach of the Agreement and its termination. During the remaining term of the Agreement and for a period thereafter Helmsley-Spear continued its efforts to sell the Property, an event which came to pass on July 2, 1986 under an agreement of June 27, 1986.

During and before the term of the Agreement a number of complicating circumstances existed, previously described in prior opinions, including the imposition of liens, pending litigation and the tax consequences surrounding any transfer. There is no dispute between the parties as to the facts surrounding these circumstances, but the litigation to date has been concerned upon the effect of these facts on the parties’ rights and obligations which have been the subject of the prior opinions, leaving unresolved only the question of anticipatory breach and termination arising out of the Banks’ decision to have a simultaneous contract of sale and closing.

Standards Applicable to Summary Judgment Motions

Summary judgment is authorized if “there is no genuine issue as to any materi[45]*45al fact and ... the moving party is entitled to a judgment as a matter of law.” Fed.R. Civ.P. 56(c). The moving party bears the burden of proving that no genuine issue of material fact exists. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48, 106 S.Ct. 2505, 2509-10, 91 L.Ed.2d 202 (1986); Corselli v. Coughlin, 842 F.2d 23 (2d Cir. 1988). All ambiguities are resolved against the moving party, and all favorable inferences are drawn in favor of the party against whom summary judgment is sought. See Adickes v. S.H. Kress & Co., 398 U.S. 144, 158-59, 90 S.Ct. 1598, 1609, 26 L.Ed.2d 142 (1970); Ramseur v. Chase Manhattan Bank, 865 F.2d 460, 465 (2d Cir.1989); Eastway Constr. Corp. v. City of New York, 762 F.2d 243, 249 (2d Cir.1985), cert. denied, 484 U.S. 918, 108 S.Ct. 269, 98 L.Ed.2d 226 (1987).

The Supreme Court recently has made clear that “at the summary judgment stage the judge’s function is not himself to weigh the evidence and determine the truth of the matter but to determine whether there is a genuine issue for trial.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249, 106 S.Ct. 2505, 2511, 91 L.Ed.2d 202 (1986); see also Donahue v. Windsor Locks Bd. of Fire Comm’rs, 834 F.2d 54, 58 (2d Cir. 1987). Summary judgment is permissible only in circumstances where “the evidence is such that a reasonable jury could not return a verdict for the nonmoving party.” Anderson, 477 U.S. at 248, 106 S.Ct. at 2510.

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721 F. Supp. 43, 1989 U.S. Dist. LEXIS 9549, 1989 WL 111200, Counsel Stack Legal Research, https://law.counselstack.com/opinion/helmsley-spear-inc-v-westdeutsche-landesbank-girozentrale-nysd-1989.