First Department Affirms Decision In Favor of Firm Client Broadway Metro Associates

The Firm won a significant appellate victory on behalf of our client, Broadway Metro Associates, LP (“Broadway Metro”).  A unanimous five-member panel of the Appellate Division, First Department affirmed a lower court ruling dismissing a breach of contract claim against Broadway Metro as seller under a contract for sale (“Contract”) of the historic Metro Theater property located on upper Broadway.  After the purchaser under that Contract failed to close the sale within the time-frame required or an additional “time-of-the-essence” closing period set in the Contract, Broadway Metro declared a default and retained the down payment.  Seller brought breach of contract and other claims, contending that Broadway Metro was unable to provide a purported bargained-for right to develop additional floor space on the roof area of the theater.  As we demonstrated in our brief, and as the Appeals Court found, the Contract required the seller to take the property subject to certain other zoning and contractual obligations, which did not guarantee, but rather precluded, such development.  The Court also agreed that the “time-of-the-essence” notice was reasonable, and affirmed the dismissal.  Lawrence Brocchini and Alice K. Jump of the Firm’s litigation group, assisted by Sander Lehrer, briefed the appeal, with Mr. Brocchini successfully arguing the appeal before the five judge panel.  The decision in the matter entitled 2626 Bway LLC v. Broadway Metro Associates, LP is reported at N.Y.S.2d, 2011 WL 2184193 (1st Dep’t June 7, 2011).