MAPLE STREET DEVELOPERS, LLC VS. SAMUEL PINTER & ASSOCIATES (L-2413-15, HUDSON COUNTY AND STATEWIDE)

CourtNew Jersey Superior Court Appellate Division
DecidedSeptember 24, 2019
DocketA-2903-17T3
StatusUnpublished

This text of MAPLE STREET DEVELOPERS, LLC VS. SAMUEL PINTER & ASSOCIATES (L-2413-15, HUDSON COUNTY AND STATEWIDE) (MAPLE STREET DEVELOPERS, LLC VS. SAMUEL PINTER & ASSOCIATES (L-2413-15, HUDSON COUNTY AND STATEWIDE)) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MAPLE STREET DEVELOPERS, LLC VS. SAMUEL PINTER & ASSOCIATES (L-2413-15, HUDSON COUNTY AND STATEWIDE), (N.J. Ct. App. 2019).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited . R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-2903-17T3

MAPLE STREET DEVELOPERS, LLC,

Plaintiff-Appellant/ Cross-Respondent,

v.

SAMUEL PINTER & ASSOCIATES, SAMUEL PINTER, individually, and L.P. MAPLE REALTY, LLC,

Defendants-Respondents/ Cross-Appellants.

Argued telephonically August 28, 2019 – Decided September 24, 2019

Before Judges Alvarez and Gooden Brown.

On appeal from the Superior Court of New Jersey, Law Division, Hudson County, Docket No. L-2413-15.

Avi Rosengarten argued the cause for appellant/cross- respondent. Joseph Rakofsky argued the cause for respondents/cross-appellants.

PER CURIAM

Plaintiff Maple Street Developers, LLC, the prospective purchaser in a

$2,000,000 real estate transaction, appeals from a Law Division judge's denial

of reconsideration of the judgment rendered after a bench trial. The judgment

was entered November 9, 2017, and the judge incorporated his written decision

in the January 25, 2018 denial of reconsideration. After trial, the judge

concluded that defendants, prospective sellers Samuel Pinter & Associates,

Samuel Pinter (individually), and L.P. Maple Street Realty, LLC, breached the

parties' agreement for the sale of real estate. He awarded $100,000 in

compensatory damages, plus out-of-pocket expenses incurred by plaintiff as a

result of defendant's breach of the contract. The judge also ordered the return

of plaintiff's escrowed $125,000, the remaining amount of the contract deposit.

Defendants cross-appeal. We affirm.

Based mainly on the credibility of witnesses, the judge found the

following circumstances in his initial decision. Unless otherwise indicated, all

quoted material is taken from the November 9, 2017 opinion.

Plaintiff, a business entity owned by Etta Ostreicher, entered into the

agreement of sale on September 16, 2014, for the acquisition of real estate in

A-2903-17T3 2 Jersey City. Plaintiff paid $200,000 as a security deposit, balance of the

purchase price due at closing. Among other things, the agreement made time of

the essence and required a clean environmental assessment. The agreement also

called for the seller to deliver marketable title.

The contract contained a $100,000 liquidated damages provision —

payable by plaintiff to defendant in the event of a breach. No mention was made

of liquidated damages in the event of a breach by defendants, unsurprising given

that ordinarily specific performance is the remedy for a breach by the seller.

By December 2014, the sale had not been consummated, the "phase one"

environmental inspection had not been completed, and the record is silent, other

than Ostreicher's assertion to that effect, as to whether plaintiff would have been

able to finance the purchase. As the judge said, this was "an arguably critically

important condition in a $2,000,000 contract without a financing contingency." 1

On December 30, 2014, defendants' principal, Samuel Pinter, who

testified on behalf of the company, and Ostreicher, amended the contract. The

relevant language, drafted by Ostreicher's attorney, stated:

Purchaser shall, no later than January 30, 2015, TIME BEING OF THE ESSENCE, close on the Premises . . . [i]n the event the Purchaser fails to close

1 When the contract was extended, Ostreicher's attorney had $891,000 in escrow, but no other proofs were produced regarding financing. A-2903-17T3 3 on or before January 30, 2015, due to no fault of the Seller, the Contract shall be . . . terminated and neither party shall have any claims against the other.

Ostreicher released $75,000 from the $200,000 deposit as "consideration for the

amendment." Time was again made of the essence, and the closing date fixed

for January 30, 2015.

In January, Ostreicher began to experience "non-specific suspicions"

regarding defendants' ability to convey clear title. While conducting her own

independent online title research, she discovered a significant deed restriction.

When Jersey City Redevelopment Agency (JCRA) conveyed the property to

defendants in 2009, the conveyance was subject to a rider stating that

the restrictions, covenants, and conditions imposed by Section 2.12, 5.02, Article VI, and 7.02 of the Redevelopment Agreement between LMD #13 Urban Renewal, LLC (predecessor to Grantee) and the Grantor, dated November 13, 2006, copies of which Sections are annexed hereto, shall hereby be incorporated into and become a part of this Deed as if fully set forth herein.

The relevant sections of the Redevelopment Agreement are not included in

either appendix. It is, however, undisputed that the rider obligated defendants

to obtain the JCRA's express written approval before a transfer to a new owner.

Missing from the record is an explanation for the omission of the deed restriction

from the initial title report.

A-2903-17T3 4 Ostreicher notified her real estate attorney about the restriction. He in

turn notified Pinter. Pinter offered to refund the deposit, but Ostreicher refused

because she wished to proceed with the project. The events, not altogether clear

to this point, become even muddier.

Ostreicher testified that she then hired a second attorney, who on April 6,

2015, met with the JCRA's counsel to learn about the necessary process for the

approval. The record does not describe any additional action she took to obtain

JCRA review of the proposed sale.

Pinter testified he called the agency repeatedly "to facilitate Ostreicher's

application," and on February 20, 2015, Pinter sent the JCRA an email

forwarding the contract. Pinter also said prior to being informed by Ostreicher's

real estate attorney, he was unaware of the deed restriction. He claimed he

owned seventy or eighty other parcels of real estate at the time.

Pinter's son, who had in December 2014, conveyed Pinter's concern to

Ostreicher that the sale was never going to occur, again began to communicate

with her directly. He repeatedly emailed her inquiring about her intentions.

Ostreicher responded that her redevelopment counsel "was waiting 'to get on

[the] calendar for the designation.'"

Meanwhile:

A-2903-17T3 5 On May 6, 2015, Maple Realty received an offer for $2.75 million from William Rosato ("Rosato"), owner of MC Maple, LLC ("MC Maple"). [Pinter's son] emailed Ostreicher to inform her of the offer. He told her that they would move forward with the new buyer as soon as possible. He also indicated that "[they] needed from [her] attorney a three or four sentence letter" indicating that she was approved as a redeveloper by the JCRA. If the letter was not received by Friday, Ostreicher's deposit would be refunded and the contract would be voided. She responded that she was doing her job and that [Pinter's son] still had to send a consent letter to the JCRA.

On May 11, 2015, Ostreicher received notice by email to void the contract from Pinter's assistant . . . . The notification was not hand delivered or sent by overnight mail to Ostreicher as required in the contract.

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MAPLE STREET DEVELOPERS, LLC VS. SAMUEL PINTER & ASSOCIATES (L-2413-15, HUDSON COUNTY AND STATEWIDE), Counsel Stack Legal Research, https://law.counselstack.com/opinion/maple-street-developers-llc-vs-samuel-pinter-associates-l-2413-15-njsuperctappdiv-2019.