Monthly Archives: October 2019

What a Tangled [And Costly] Web We Weave …..

This was originally published on the SGR Blog.

The commercial lease agreement between The St. Luke’s Hospital Center, as landlord, and WestSide Radiology Associates, as tenant, prohibited WestSide from assigning the lease without St. Luke’s prior written consent.

The lease rider defined an assignment as a transfer of a “Controlling Interest,” meaning “more than a fifty percent (50%) interest in the [stock of the corporate tenant]” or “the ability to control the decisions or affairs of the [corporate tenant].” And the lease required that any assignee be an active member of St. Luke’s medical staff with admitting privileges.

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“Offer and Acceptance” and “Meeting of the Minds” Déjà vu

This was originally posted on the SGR Blog.

In first year “contracts” (in 1966) at NYU Law, Professor Francis J. Putman spent (what seemed like) several weeks on “offer and acceptance” and “meeting of the minds.” Five decades later, our courts still periodically address those threshold issues. A recent case illustrates the point.

In March 2015, William Collins entered into negotiations with Utica Builders, LLC, for the sale of the Collins’ real property located in Brooklyn. On March 6, 2015, Utica submitted a proposal to purchase the property for $590,000, with a deposit of $29,500. Collins then sent Utica an unexecuted proposed contract of sale that included Utica’s proposed price terms and provided that the property would be sold as is. On March 19, 2015, Utica sent Collins a check in the amount of $29,500, as a deposit,  and four signed copies of the contract of sale– with handwritten additions stating that Collins represented that the “[p]remises are a legal (2) family dwelling as per the certificate of occupancy.” On March 26, 2015, Collins’ attorney changed the handwritten description of the premises from “(2) family dwelling” to “(1) family dwelling,” and sent two original copies of the fully executed contract of sale back to Utica’s attorney.

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Not Every Written and Signed “Agreement” is a Legally Enforceable “Contract”

This was originally published on the SGR blog.

On January 4, 2013, Thelma Sosa and Aron Froimovits signed a handwritten, one-page agreement in which Sosa agreed to sell to Froimovits or his assignee two separate properties in Brooklyn, one located on Menahan Street and the other on Central Avenue. The agreement contained a single purchase price, $1,375,000, for both properties. Froimovits was to give Sosa a deposit of $1,000 “plus $99,000 upon demand of [Sosa] to be held in escrow with [Sosa’s] attorney or a title company.” Froimovits gave Sosa a check for $1,000. No demand was ever made for the additional $99,000.

The Menahan property was to be delivered at closing with at least four apartments vacant. And the Central Avenue property was to be delivered with at least three vacant apartments. The closing was to be held “30 days after notice to buyer that the properties are vacant.”

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If A Tree Falls in the Forest…

This originally appeared on the SGR blog.

In 2016 John and Joanne Rhodes purchased a townhouse unit in the Lagoon Manor Development on the shores of Lake George in the Town of Bolton Landing, Warren County. All common property within the Manor is owned by Lagoon Manor Home Owner’s Association, Inc. Anne Swope also owns a townhouse in the Manor and was a Board member of the HOA from October 2014 to July 31, 2018.

The Rhodes alleged that, on or about August 7, 2017, the Adirondack Park Agency granted permits which authorized view plans to be implemented on HOA property. The view plans — intended to create a “filtered view of Lake George” — provided that certain trees would be removed or trimmed while other trees would remain. The HOA hired a contractor to complete the approved tree trimming.

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