FILED: ORANGE COUNTY CLERK 07/18/2020 11:21 AM
`NYSCEF DOC. NO. 6
`
`INDEX NO. EF002960-2020
`
`RECEIVED NYSCEF: 07/18/2020
`
`SUPREME
`COUNTY
`
`OF THE STATE OF NEW YORK
`COURT
`OF ORANGE
`
`D&N REALTY
`
`LIMITED
`
`LIABILITY
`
`COMPANY,
`
`Plaintiff,
`
`-against-
`
`Index
`
`No. EF002960-2020
`
`THE LAUREN
`
`INVESTMENT
`
`CORPORATION,
`
`AMENDED
`
`COMPLAINT
`
`.
`
`Defendants.
`
`Plaintiff
`
`D&N Realty
`
`Limited
`
`Liability
`
`Company
`
`("Purchaser"),
`
`by
`
`its attorneys,
`
`for
`
`its
`
`amended
`
`complaint
`
`egeinst
`
`the defendants,
`
`The
`
`Lauren
`
`Investment
`
`Corporation
`
`("Seller"),
`
`alleges
`
`as follows:
`
`1.
`
`This
`
`complaint
`
`is being
`
`amended
`
`pursuant
`
`to. CPLR §3025(a),
`
`as of
`
`right.
`
`NATURE
`
`OF THE ACTION
`
`2.
`
`On June
`
`19, 2019,
`
`Purchaser's
`
`predecessor
`
`and Seller
`
`entered
`
`into
`
`a "Contract
`
`of
`
`Sale--Office,
`
`Commercial
`
`and Multi-Family
`
`Residential
`
`Premises"
`
`(the
`
`"Contract
`
`of Sale")
`
`and
`
`"Rider
`
`Attached
`
`to and Forming
`
`Part
`
`of Contract
`
`of
`
`Sale"
`
`(the
`
`"Rider"),
`
`dated
`
`June
`
`19, 2019,.
`
`for
`
`acquisition
`
`of
`
`the real
`
`located
`
`at 364 Route
`
`Town
`
`Purchaser's
`
`property
`
`211 East, Middletown,
`
`of
`
`Wallkill,
`
`County
`
`of Orange,
`
`New York
`
`10940
`
`(the
`
`"Premises")c
`
`Section
`
`25 of
`
`the Rider
`
`set an
`
`initial
`
`"drop
`
`dead
`
`date"
`
`for
`
`closing
`
`the
`
`acquisition
`
`of
`
`12 months
`
`after
`
`execution,i.e.,
`
`by
`
`June
`
`18,
`
`2020
`
`(the
`
`"Original
`
`Drop
`
`Dead
`
`Date"),
`
`but
`
`neither
`
`the Rider
`
`nor
`
`the.Contract
`
`of Sale
`
`Included
`
`a
`
`"time
`
`is of
`
`the
`
`essence"
`
`clause.
`
`3.
`
`As
`
`set
`
`forth
`
`in Section
`
`24 of
`
`the Rider,
`
`Purchaser
`
`intended
`
`to develop
`
`a retail
`
`bank
`
`building
`
`on
`
`the Premises,
`
`and
`
`the
`
`transaction
`
`was
`
`specifically
`
`made
`
`contingent
`
`upon
`
`Purchaser
`
`obtaining
`
`approval
`
`of
`
`its developmeñt
`
`application
`
`from the relevant
`
`governmental
`
`authorities.
`
`The
`
`Filed in Orange County
`
`07/18/2020
`
`11:21:06
`
`AM $0.00
`
`Bk: 5140
`1 of 22
`
`Pg: 1962
`
`Index: # EF002960-2020
`
`Clerk: DK
`
`

`

`FILED: ORANGE COUNTY CLERK 07/18/2020 11:21 AM
`NYSCEF DOC. NO. 6
`
`INDEX NO. EF002960-2020
`
`RECEIVED NYSCEF: 07/18/2020
`
`Contract
`
`of Sale
`
`included
`
`several
`
`provisions
`
`for Purchaser's
`
`benefit
`
`that
`
`allowed
`
`it
`
`to extend
`
`the
`
`Origiñâl
`
`Drop
`
`Dead
`
`Date,
`
`or even
`
`cancel
`
`the Contract
`
`of Sale
`
`and Rider,
`
`if
`
`its applications
`
`were
`
`not
`
`approved
`
`in a timely
`
`manner.
`
`4.
`
`Purchaser
`
`pursued
`
`its
`
`approvals
`
`with
`
`diligence
`
`(expêñding
`
`significant
`
`time
`
`and
`
`money
`
`to do so) and
`
`obtained
`
`preliminary
`
`site
`
`plan
`
`approval
`
`for
`
`its development
`
`from
`
`the Town
`
`of Wallkill
`
`Board
`
`on December
`
`its effort
`
`to obtain
`
`final
`
`site
`
`plan
`
`Planning
`
`17, 2019.
`
`However,
`
`approval
`
`was
`
`hampered
`
`and
`
`delayed
`
`by
`
`the
`
`COVID-19
`
`pandemic
`
`and
`
`resulting
`
`govcrñmêñt
`
`shutdown.
`
`As
`
`a result,
`
`several
`
`conditions
`
`to final
`
`site
`
`plan
`
`approval
`
`remained
`
`unfulfilled
`
`through
`
`June
`
`2020.
`
`These
`
`delays
`
`resulted
`
`in an extension
`
`of
`
`the Original
`
`Drop
`
`Dead Date
`
`on a day-for-day
`
`basis with
`
`the COVID-19
`
`shutdown
`
`until
`
`at
`
`5.
`
`Nevertheless,
`
`on June
`
`7, 2020
`
`least August
`-
`
`11 days
`
`18, 2020
`
`(the
`
`"New
`
`Drop
`
`Dead
`
`Date").
`
`before
`
`the Original
`
`Dead
`
`Date
`
`-
`
`Drop
`
`Purchaser
`
`notified
`
`Seller
`
`that
`
`it was
`
`ready,
`
`willing,
`
`and
`
`able
`
`to close
`
`once
`
`Seller's
`
`documentation
`
`was
`
`ready.
`
`Purchaser
`
`proposed
`
`a closing
`
`date
`
`in mid-July
`
`2020,
`
`specifically
`
`so that
`
`Seller
`
`could
`
`satisfy
`
`its own
`
`obligations
`
`and
`
`prepare
`
`such
`
`documentation,
`
`which
`
`was
`
`after
`
`the Original
`
`Drop
`
`Dead
`
`Date,
`
`but well
`
`before
`
`the New Drop
`
`Dead
`
`Date·
`
`We are looking
`mid
`at a closing
`a number
`things
`there
`were
`of
`you
`to be sure
`had plenty
`wä;ücd
`end.
`I'm happy
`to start
`reviewing
`
`July
`for
`
`- probably
`Seller
`to deal
`of notice.
`The
`Seller
`documents
`
`between
`the
`under
`with
`approvals
`as soon
`
`15th
`and 21st.
`the Agreement,
`are now in hand
`as they
`are prepa
`
`I know
`so I
`on our
`ed.
`
`6.
`
`through
`
`responded
`
`four
`
`days
`
`later,
`
`and
`
`stated
`
`enthusiastically:
`
`Seller,
`
`its counsel,
`
`"Great
`
`news!
`
`Now that
`
`you
`
`have
`
`finally
`
`told me your
`
`client's
`
`site
`
`plan
`
`is approved
`
`I will
`
`let my
`
`clients
`
`know!"
`
`In
`
`fact,
`
`Seller's
`
`counsel
`
`began
`
`that
`
`response
`
`by
`
`apologizing
`
`for
`
`its
`
`lateness,
`
`attributing
`
`the
`
`delay
`
`to his
`
`associate
`
`having
`
`been
`
`furloughed
`
`(presumably
`
`as. a result
`
`of COVID-
`
`19):
`
`"Sorry
`
`I missed
`
`this
`
`e-mail...Sarah
`
`my
`
`associate
`
`has
`
`been
`
`on
`
`furlough
`
`so a couple
`
`e-mails
`
`have
`
`been
`
`slipping
`
`through..
`
`"
`
`2
`
`2 of 22
`
`

`

`FILED: ORANGE COUNTY CLERK 07/18/2020 11:21 AM
`NYSCEF DOC. NO. 6
`
`INDEX NO. EF002960-2020
`
`RECEIVED NYSCEF: 07/18/2020
`
`7.
`
`Seller
`
`never
`
`objected
`
`to a closing
`
`date
`
`after
`
`the Original
`
`Drop
`
`Dead
`
`Date.
`
`Had
`
`Seller
`
`responded
`
`to Purchaser's
`
`June
`
`7, 2020
`
`e-mail
`
`by
`
`insisting
`
`on
`
`closing
`
`on
`
`or before
`
`the
`
`Original
`
`Drop
`
`Date,
`
`or even
`
`by noting
`
`that
`
`time
`
`is of
`
`the essence,
`
`Purchaser
`
`would
`
`have
`
`done
`
`so,
`
`as it was
`
`ready,
`
`willing,
`
`and
`
`able
`
`to close
`
`at
`
`that
`
`point.
`
`Indeed,
`
`as indicated
`
`in Seller's
`
`coüüsel's
`
`June
`
`7, 2020
`
`e-mail,
`
`date was
`
`an accommodation
`
`to Seller,
`
`Based
`
`on Seller's
`
`positive
`
`the mid-July
`
`response
`
`and lack
`
`of objection
`
`to a later
`
`closing
`
`date
`
`or any
`
`indication
`
`that
`
`time was
`
`of
`
`the essence,
`
`Purchaser
`
`continued
`
`its preparation
`
`for
`
`closing
`
`in mid-July.
`
`8..
`
`Suddenly,
`
`Original
`
`Drop
`
`Dead
`
`Date
`
`at 5:42
`-
`
`p.m.
`
`on .June
`
`18,
`
`2020
`
`-
`
`after
`
`the
`
`close
`
`of
`
`business
`
`on
`
`the
`
`Joseph
`
`Romero,
`
`purportedly
`
`acting
`
`on
`
`behalf
`
`of Seller
`
`despite
`
`serving
`
`as Purchaser's
`
`broker
`
`in the transaction,
`
`sent an e-mail
`
`to Purchaser
`
`notifying
`
`it
`
`that Seller
`
`would
`
`not
`
`close.
`
`In
`
`asserted
`
`that
`
`Purchaser
`
`failed
`
`Seller
`
`9.
`
`his
`
`e-mail,
`
`Romero
`
`to notify
`
`that
`
`it had
`
`obtained
`
`"site
`
`plan
`
`approval"
`
`in December
`
`2019
`
`for
`
`its planned
`
`development
`
`on
`
`the Premises,
`
`allegedly
`
`in breach
`
`of a provision
`
`in the Contract
`
`of Sale
`
`requiring
`
`Purchaser
`
`to notify
`
`Seller
`
`when
`
`site
`
`plan
`
`approval
`
`had
`
`been
`
`obtained,
`
`and to close
`
`the acquisition
`
`within
`
`60 days
`
`of
`
`receipt
`
`of
`
`that
`
`approval.
`
`10.
`
`Seller's
`
`position
`
`concerñing
`
`site
`
`plan
`
`approval
`
`was
`
`and
`
`is wrong.
`
`In December
`
`2019,
`
`the
`
`Town
`
`of Wallkill.
`
`Board
`
`granted
`
`site
`
`plan
`
`approval
`
`to
`
`Plaññiñg
`
`only
`
`prc!!min-f
`
`Purchaser;
`
`but
`
`that
`
`preliñûñäry
`
`approval
`
`was
`
`subject
`
`to
`
`numerous
`
`conditiont
`
`The
`
`Town
`
`of
`
`Wallkill
`
`Zoning
`
`Code
`
`makes
`
`clear
`
`that
`
`preliminary
`
`approval
`
`is
`
`not
`
`"site
`
`plan
`
`approval."
`
`.Accordingly,
`
`Seller's
`
`position
`
`was
`
`simply
`
`wrong,
`
`and
`
`its refusal
`
`to close was
`
`also wrong.
`
`I l.
`
`In fact,
`
`Seller's
`
`real motivation
`
`for not
`
`closing
`
`was
`
`revealed
`
`in Romero's
`
`e-mail.
`
`In
`
`that
`
`e-mail,
`
`Romero
`
`accused
`
`Purchaser
`
`ofengaging
`
`"deceitful"
`
`in a
`
`plan
`
`to develop
`
`the Premises
`
`3
`
`3 of 22
`
`

`

`FILED: ORANGE COUNTY CLERK 07/18/2020 11:21 AM
`NYSCEF DOC. NO. 6
`
`INDEX NO. EF002960-2020
`
`RECEIVED NYSCEF: 07/18/2020
`
`for
`
`a profit,
`
`and
`
`to
`
`"flip"
`
`the
`
`property
`
`once
`
`a profitable
`
`tenant
`
`-
`
`Bank
`
`of America
`
`-
`
`took
`
`occupancy
`
`"deceitful"
`
`of Purchaser's
`
`new development.
`
`Under
`
`this
`
`theory,
`
`it appears
`
`that Seller
`
`believes
`
`it
`
`is
`
`for
`
`a profitable
`
`real
`
`estate
`
`developer
`
`fo develop
`
`real
`
`estate
`
`for a profit.
`
`12.
`
`By
`
`the time
`
`of Romero's
`
`e-mail
`
`-
`
`after
`
`the
`
`close
`
`of business
`
`on June
`
`18,.2020,
`
`the
`
`Original
`
`and eleven
`
`days
`
`after
`
`Purchaser
`
`informed
`
`Seller
`
`that
`
`it
`
`intended
`
`to close
`
`Drop
`
`Dead
`
`Date,
`
`in mid-July
`
`so that Seller
`
`could
`
`satisfy
`
`its own
`
`obligations
`
`-
`
`it was
`
`too
`
`late to close
`
`the transaction
`
`by the Original
`
`Drop
`
`Dead
`
`Date,
`
`which
`
`was
`
`then
`
`over.
`
`That
`
`was
`
`no coincideñee.
`
`13.
`
`Yet,
`
`Seller
`
`now claims
`
`that Purchaser's
`
`failure
`
`to close
`
`by the Original
`
`Drop
`
`Dead
`
`Date -
`
`despite
`
`there
`
`being
`
`no time
`
`is of
`
`the essence
`
`clause
`
`in the Contract
`
`of Sale or Rider,
`
`Seller's
`
`failure
`
`to inform
`
`Pürchaser
`
`before
`
`the Original
`
`Drop
`
`Dead
`
`Date
`
`that
`
`it would
`
`not
`
`close
`
`thereafter,
`
`it can
`
`cancel
`
`the
`
`and without
`
`regard
`
`for
`
`the delays
`
`caused
`
`by COVID-19
`
`- means
`
`contract
`
`and
`
`take
`
`the
`
`benefits
`
`of Purchaser's
`
`development
`
`work
`
`for
`
`itself,
`
`while
`
`depriving
`
`Purchaser
`
`of
`
`the
`
`Premises,
`
`a unique
`
`parcel
`
`of
`
`land
`
`that
`
`it was
`
`poised
`
`to develop
`
`for
`
`the
`
`benefit
`
`of a lucrative
`
`new
`
`tenant;
`
`and ultimately
`
`to sell
`
`for a substantial
`
`profit.
`
`Seller
`
`was well
`
`aware
`
`that
`
`this was Purchaser's
`
`plan when
`
`it entered
`
`into
`
`the Contract
`
`of Sale
`
`and when
`
`Purchaser
`
`proposed
`
`a closing
`
`date
`
`in mid-
`
`had come
`
`when
`
`it
`
`Iater
`
`refused
`
`that
`
`July,
`
`was
`
`and Seller
`
`knew
`
`that
`
`the plan
`
`to fruition
`
`to close;
`
`indeed,
`
`precisely
`
`why
`
`Seller
`
`refused
`
`to do so.
`
`14.
`
`Accordingly,
`
`Purchaser
`
`demanded
`
`that Seller
`
`confirm
`
`that
`
`it would
`
`close,
`
`and when
`
`Seller
`
`failed
`
`to do so, Purchaser
`
`filed
`
`the instant
`
`action
`
`and
`
`obtained
`
`a Notice
`
`of Pendency..
`
`15.
`
`On July
`
`10, 2020,
`
`and consistent
`
`with
`
`its counsel's
`
`June
`
`7, 2020
`
`e-mail,
`
`Purchaser
`
`formally
`
`notified
`
`Seller
`
`that
`
`the closing
`
`would
`
`occur
`
`on July
`
`16, 2020,
`
`well
`
`in advance
`
`of
`
`the New
`
`Drop
`
`Dead
`
`Date.
`
`4
`
`4 of 22
`
`

`

`FILED: ORANGE COUNTY CLERK 07/18/2020 11:21 AM
`NYSCEF DOC. NO. 6
`
`INDEX NO. EF002960-2020
`
`RECEIVED NYSCEF: 07/18/2020
`
`16.
`
`Purchascr
`
`funded
`
`and
`
`appeared
`
`for
`
`the
`
`closing
`
`on July
`
`I6,
`
`2020,
`
`but Seller
`
`failed
`
`to do so.
`
`17.
`
`Accordingly,
`
`Purchaser
`
`seeks
`
`a judgment
`
`from
`
`the Court
`
`finding
`
`that
`
`Seller
`
`is in
`
`breach
`
`ofthe
`
`Contract
`
`of Sale and Rider,
`
`and ordering
`
`Seller
`
`to specifically
`
`perform
`
`its obligations
`
`thereunder
`
`by closing
`
`on the sale,
`
`and to pay Purchaser
`
`fair market
`
`value
`
`for
`
`its use and
`
`occupancy
`
`of
`
`the Premises
`
`until
`
`such
`
`time
`
`as specific
`
`performance
`
`is granted
`
`and Purchaser
`
`takes
`
`pessession
`
`thereof,
`
`which
`
`Purchaser
`
`values
`
`at $20,000
`
`per month
`
`based
`
`upon
`
`its lease with
`
`Bank
`
`of America;
`
`or, alternatively,
`
`for
`
`direct
`
`and
`
`consequential
`
`damages
`
`in excess
`
`of $3.5 million.
`
`PARTIES,
`
`JURISDICTION,
`
`AND VENUE
`
`18.
`
`Plaintiff
`
`Limited
`
`Company
`
`!imited
`
`D&N Realty
`
`Liability
`
`is a New Jersey
`
`liability
`
`company
`
`with
`
`a principal
`
`place
`
`of business
`
`in Ridgewood,
`
`New Jersey.
`
`19.
`
`Upon
`
`information
`
`and
`
`belief,
`
`Defendant
`
`The
`
`Lauren
`
`Investment
`
`Corporation
`
`is a
`
`Florida
`
`corporation
`
`with
`
`a principal
`
`place
`
`of
`
`business
`
`in Miami,
`
`Florida,
`
`and
`
`an office
`
`in New
`
`York
`
`(which
`
`is also
`
`its DOS Prõcess
`
`address)
`
`located
`
`at 34 Mansion
`
`Ridge
`
`Blvd.,
`
`Monroe,
`
`New
`
`York
`
`10950.
`
`20.
`
`This Court
`
`has personal
`
`jurisdiction
`
`over
`
`Seller
`
`because
`
`Seller
`
`conducts
`
`substantial
`
`business
`
`within
`
`the State
`
`of New York
`
`and the events
`
`giving
`
`rise
`
`to this
`
`lawsuit
`
`took
`
`place
`
`in this
`
`state.
`
`21..
`
`Venue
`
`is proper
`
`pursuant
`
`to New York
`
`CPLR 507
`
`because
`
`the Premises
`
`is located
`
`in Orange
`
`County..
`
`5
`
`5 of 22
`
`

`

`FILED: ORANGE COUNTY CLERK 07/18/2020 11:21 AM
`NYSCEF DOC. NO. 6
`
`INDEX NO. EF002960-2020
`
`RECEIVED NYSCEF: 07/18/2020
`
`The
`
`Premises
`
`FACTS
`
`22.
`
`The Premises
`
`is a commerciãl
`
`property
`
`located
`
`at 364 Route
`
`211.East,
`
`Middletowri,
`
`Town
`
`of Walikill,
`
`County
`
`or Orange,
`
`State
`
`of New York,
`
`10940,
`
`and more
`
`particularly
`
`defined
`
`as
`
`Section
`
`50, Block.2,
`
`Lot
`
`46.
`
`23.
`
`24.
`
`25.
`
`Seller
`
`owns
`
`the Premises,
`
`which
`
`it previously
`
`leased
`
`to a restaurant.
`
`Romero
`
`was Seller's
`
`property
`
`manager
`
`with
`
`respect
`
`to the Premises.
`
`On June
`
`17, 2019,
`
`Purchaser
`
`and Romero
`
`entered
`
`into
`
`a Referral
`
`Fee Agreement,
`
`under
`
`which
`
`Romero
`
`agreed
`
`to act
`
`as l'urchaser's
`
`broker
`
`for
`
`the acqul%n
`
`of
`
`the Premises
`
`exchange
`
`for
`
`$50,000.00,
`
`to be paid
`
`at
`
`the
`
`closing.
`
`Ä copy
`
`of
`
`the Referral
`
`Fee Agreement
`
`in
`
`is
`
`attached
`
`hereto
`
`and made
`
`part
`
`hereof
`
`as Exhibit
`
`A.
`
`26.
`
`Although
`
`Romero
`
`also
`
`employed
`
`he
`
`assured
`
`Purchaser
`
`that
`
`he was
`
`disclosed
`
`a dual
`
`agency
`
`acting
`-
`
`was
`
`as Seller's
`
`property
`
`manager,
`
`entirely
`
`in its interest
`
`and
`
`not
`
`in a dual
`
`agency
`
`capacity
`
`-
`
`and never
`
`which
`
`Seller
`
`itself
`
`confirmed
`
`in an e-mail
`
`to Purchaser:
`
`note
`
`Kindly
`performing
`performed
`by
`for
`responsible
`any
`action
`is outstandiñg
`
`whatever
`that
`Joseph
`Mr.
`C, Romero,
`request
`the
`to
`or any
`of
`buyer
`assist
`seller
`or capacity
`the
`in any mañncr
`of Mr.
`Joseph
`C. Romero's
`or an alleged
`act or negligence
`
`seller's
`property
`be construed
`not
`shall
`seller
`not
`shall
`the
`and
`or not
`whether
`actions,
`or misconduct.
`
`manager,
`as being
`be held
`such
`
`is
`
`any
`
`A true
`
`and accurate
`
`copy
`
`of
`
`this
`
`e-mail
`
`is attached
`
`hereto
`
`and made
`
`part
`
`hereof
`
`as Exhibit
`
`B.
`
`The
`
`Contract
`
`of Sale
`
`27.
`
`On June
`
`19, 2019,
`
`Seller
`
`and Middletown-Wallkill
`
`Realty
`
`Partners,
`
`an affiliate
`
`of
`
`Purchaser,
`
`entered
`
`into
`
`the Contract
`
`of Sale
`
`and Rider.
`
`A true
`
`and
`
`accurate
`
`copy
`
`of
`
`the Contract
`
`of Sale
`
`and Rider
`
`is attached
`
`hereto
`
`and made
`
`part
`
`hereof
`
`as Exhibit
`
`C.
`
`28.
`
`The Contract
`
`of Sale
`
`set a purchase
`
`price
`
`for
`
`the sale
`
`of
`
`the Premises
`
`of $1,483,000.
`
`6
`
`6 of 22
`
`

`

`FILED: ORANGE COUNTY CLERK 07/18/2020 11:21 AM
`NYSCEF DOC. NO. 6
`
`INDEX NO. EF002960-2020
`
`RECEIVED NYSCEF: 07/18/2020
`
`29.
`
`Purchaser
`
`intended
`
`to
`
`develop
`
`a
`
`retail
`
`bank
`
`building
`
`on
`
`the
`
`Premises.
`
`The
`
`transaction
`
`was
`
`specifically
`
`made
`
`contingent
`
`upon
`
`Purchaser
`
`obtaining
`
`site plan
`
`approval.
`
`30.
`
`Section
`
`24
`
`of
`
`the Rider
`
`included
`
`a "Retail
`
`Building
`
`Approval
`
`Contingency"
`
`that
`
`noted
`
`Purchaser's
`
`intent
`
`"to
`
`construct
`
`a freestanding
`
`approx
`
`4,000
`
`sq/ft
`
`retail
`
`building
`
`with
`
`drive
`
`thru
`
`on the
`
`premises,"
`
`i.e.,
`
`the proposed
`
`bank.
`
`It
`
`further
`
`provided
`
`that
`
`the "sale
`
`is contingent
`
`the
`
`purchaser
`
`obtaining
`
`approval
`
`for
`
`his
`
`application
`
`from
`
`the
`
`local
`
`Department
`
`of Buildings
`
`on
`
`or
`
`over
`
`the approval
`
`process."
`
`other
`
`agency
`
`withjurisdiction
`
`31.
`
`32
`
`On
`
`its face,
`
`Section
`
`24 of
`
`the Rider
`
`is for
`
`the benefit
`
`of Purchaser.
`
`Purchaser's
`
`obligations
`
`under
`
`the
`
`Contract
`
`of
`
`Sale
`
`and Rider
`
`were
`
`subject
`
`to
`
`Section
`
`24 of
`
`the Rider.
`
`33.
`
`Section
`
`25 of
`
`the Rider
`
`set
`
`forth
`
`the Original
`
`Drop
`
`Dead
`
`Date
`
`for
`
`the deal
`
`to close
`
`absent
`
`any
`
`delays
`
`caused
`
`through
`
`no fault
`
`of Purchaser:
`
`occur
`
`of
`
`-
`12 months
`not
`of
`In the
`dead
`within
`does
`title
`the closing
`event
`date
`Drop
`the purchaser
`no fault
`then
`through
`executed
`contract
`date
`of a fully
`from the
`be null
`contract/rider
`and
`contract/rider
`cancel
`shall
`this
`this
`either
`and
`party may
`in
`the
`terminated
`be
`shall
`contract/rider
`all
`rights/obligations
`void
`and
`and
`party.
`be automatically
`date herein
`unenforceable
`either
`shall
`dead
`against
`The
`drop
`the purchaser
`for
`extended
`is delayed
`the seller's
`that
`in signing
`each
`day
`by
`delay
`of Buildings
`other
`documents
`the Department
`or any
`as requested
`by
`agency
`approval
`In or
`jurisdiction
`the building/variance
`process.
`to calculate
`over
`ler
`the
`purchaser
`must
`written
`of his
`the
`give
`seller
`notice
`request
`for
`The
`shall
`have
`10 business
`days
`to perform
`such
`seller
`action
`and
`in
`10 business
`days
`then
`does
`such
`within
`seller
`not
`perform
`for
`action
`be extended
`business
`dead
`after
`10th
`the drop
`date
`the
`shall
`day
`day
`Purchaser
`of
`such
`in writing
`so that
`shall
`extension
`seller
`the
`notify
`are aware
`of an extension
`the drop
`dead
`date.
`
`any
`with
`
`extension,
`any
`action.
`seller's
`the event
`the
`and every
`each
`accordingly.
`both
`parties
`
`of
`
`(Emphasis
`
`added),
`
`34.
`
`Section
`
`25 of
`
`the Rider
`
`established
`
`the outside
`
`date
`
`of
`
`the Purchaser's
`
`contingency
`
`period:
`
`Purchaser
`
`had a year
`
`to gain
`
`its approvals.
`
`Theresfier,
`
`Section
`
`25 gave
`
`either
`
`party
`
`the right
`
`to cancel.
`
`7
`
`7 of 22
`
`

`

`FILED: ORANGE COUNTY CLERK 07/18/2020 11:21 AM
`NYSCEF DOC. NO. 6
`
`INDEX NO. EF002960-2020
`
`RECEIVED NYSCEF: 07/18/2020
`
`35.
`
`Thus,
`
`because
`
`the Contract
`
`of Sale
`
`and Rider
`
`we
`
`e executed
`
`on June
`
`19, 2019,
`
`the
`
`Original
`
`Drop
`
`Dead
`
`Date
`
`would
`
`have
`
`been
`
`June
`
`18, 2020,
`
`absent
`
`any
`
`delays
`
`caused
`
`"through
`
`no
`
`fault
`
`of
`
`the
`
`[P]ürchaser"
`
`and/or
`
`if Seller
`
`delayed
`
`in "signing
`
`any
`
`documcats
`
`as requested
`
`by
`
`the
`
`Department
`
`of Buildings
`
`or any other
`
`agency
`
`withjurisdiction
`
`over
`
`the building/variance
`
`approval
`
`process,"
`
`36.
`
`in which
`
`case the drop
`
`dead
`
`date would
`
`be extended
`
`accordingly.
`
`of
`
`shall
`
`take
`
`within
`
`Section
`
`26 of
`
`the Rider.states
`
`that."Closing
`
`title
`
`place
`
`60 days
`
`of
`
`the purchaser
`
`plan
`
`approval
`
`is
`
`obtaining
`
`obtained."
`
`site plan
`
`approval.
`
`Purchaser
`
`shall
`
`notify
`
`the
`
`seller
`
`in writing
`
`once
`
`site
`
`Thus,
`
`obtaining
`
`site plan
`
`approval
`
`was
`
`a contiñgeñcy
`
`of
`
`the
`
`sale.
`
`37.
`
`Section
`
`29 of
`
`the Rider
`
`provides
`
`that
`
`"Purchaser
`
`shall
`
`have
`
`the
`
`right
`
`to assign
`
`its
`
`rights
`
`under
`
`this Agreement
`
`or
`
`to take
`
`title
`
`in the
`
`name
`
`of a nominee
`
`or an affiliate
`
`of,
`
`or entity
`
`differs
`
`from that
`
`reflected
`
`related
`
`to, or controlled
`
`by Purchaser
`
`that
`
`in this Agreement,
`
`so long
`
`as
`
`such
`
`change
`
`does
`
`not
`
`result
`
`in a change
`
`of
`
`control
`
`of
`
`the
`
`pumhase"
`
`and
`
`requires
`
`that Purchaser
`
`give
`
`Seller
`
`at
`
`least
`
`10
`
`days'
`
`notice
`
`prior
`
`to closing
`
`of any
`
`such
`
`assignment,
`
`38.
`
`Section
`
`17 of
`
`the Rider
`
`provides
`
`that:
`
`"Notwithstanding
`
`any
`
`provision
`
`to
`
`the
`
`contrary,
`
`in
`
`the
`
`event
`
`of Seller's
`
`default,
`
`Purchaser
`
`shall
`
`have
`
`the
`
`right
`
`to
`
`seek
`
`specific
`
`performance
`
`"
`
`(Emphasis
`
`in original)
`
`39.
`
`On or about
`
`June
`
`27, 2019, Middletown-Wallkill
`
`Realty
`
`Partners
`
`assigned
`
`its rights
`
`under
`
`the Contract
`
`of Sale
`
`and Rider
`
`to Purchaser,
`
`which
`
`is an affiliate
`
`of Middletown-Wallkill
`
`Realty
`
`Partners.
`
`This
`
`assignment
`
`did
`
`not
`
`result
`
`in a. chañge
`
`of
`
`control
`
`of
`
`the Purchaser
`
`and was
`
`thus
`
`authorized
`
`under
`
`Section
`
`29 of
`
`the Rider
`
`without
`
`Seller's
`
`censent.
`
`Purchaser
`
`provided
`
`notice
`
`of
`
`this
`
`assigñmcñt
`
`several
`
`times,
`
`the most
`
`recent
`
`of which
`
`was
`
`on May
`
`26,
`
`2020, more
`
`than
`
`10
`
`days
`
`before
`
`the closing.
`
`8
`
`8 of 22
`
`

`

`FILED: ORANGE COUNTY CLERK 07/18/2020 11:21 AM
`NYSCEF DOC. NO. 6
`
`INDEX NO. EF002960-2020
`
`RECEIVED NYSCEF: 07/18/2020
`
`Purchaser
`
`Seeks
`
`Approvals
`
`for
`
`its Developmcat
`
`Plans
`
`40.
`
`Following
`
`execution
`
`of
`
`the Contract
`
`of Sale
`
`and Rider
`
`and assignment
`
`of
`
`the same
`
`to Purchaser,
`
`Purchaser
`
`diligently
`
`pursüêd
`
`all
`
`necessary
`
`approvals
`
`and met
`
`regularly
`
`with
`
`the
`
`appropriate
`
`state
`
`and
`
`local
`
`permitting
`
`authorities
`
`(the
`
`"Governing
`
`Bodies")
`
`to ensure
`
`that
`
`it could
`
`final
`
`site
`
`plan
`
`approval
`
`and would
`
`thus
`
`be able
`
`to close
`
`on or before
`
`Dead
`
`obtain
`
`the Drop
`
`Date,
`
`spending
`
`upwards
`
`of $200,000
`
`to do so.
`
`41.
`
`In
`
`anticipatioñ
`
`of
`
`its development
`
`of
`
`the Premises,
`
`Purchaser
`
`has
`
`entered
`
`into
`
`a
`
`triple-net
`
`lease with
`
`Bank
`
`of America
`
`for
`
`rental
`
`payments
`
`of $20,000
`
`per month.
`
`42.
`
`Purchaser
`
`also
`
`has entered
`
`into
`
`a letter
`
`of
`
`intent
`
`to sell
`
`the Premises,
`
`with
`
`Bank
`
`of
`
`America
`
`as a tenant,
`
`to a third
`
`party
`
`for
`
`$5.2 million.
`
`At
`
`all
`
`Seller
`
`aware
`
`the
`
`43.
`
`relevant
`
`times,
`
`has been
`
`of both
`
`lease
`
`to Bank
`
`of America
`
`and the letter
`
`of
`
`intent.1
`
`44.
`
`Purchaser
`
`was well
`
`on.its
`
`way
`
`to obtaining
`
`all
`
`necessary
`
`permits,
`
`approvals,
`
`and
`
`variances,
`
`and ultimately
`
`final
`
`site plan
`
`approval,
`
`well
`
`in advañce
`
`of
`
`the Original
`
`Drop
`
`Dead Date.
`
`45.
`
`On December
`
`17, 2019,
`
`the Town
`
`of Wallkill
`
`Planning
`
`Board
`
`issued
`
`a resolution
`
`(the
`
`"Resolution")
`
`granting"pre!!m!rry
`
`site
`
`plan
`
`approval"
`
`that was
`
`expressly
`
`"subject
`
`to the
`
`conditions
`
`set
`
`forth
`
`in this
`
`resolution."
`
`A true
`
`and
`
`accurate
`
`copy
`
`of
`
`the Resolutioñ
`
`is attached
`
`hereto
`
`and made
`
`a part
`
`hereof
`
`as Exhibit
`
`D (emphasis
`
`added).
`
`46.
`
`Upon.information
`
`and
`
`belief,
`
`Seller
`
`was
`
`aware
`
`of
`
`the
`
`issuance
`
`of preliminary
`
`site
`
`plan
`
`approval
`
`in December
`
`2019,
`
`as the Resolution
`
`was
`
`issued
`
`and made
`
`available
`
`publicly
`
`after
`
`a public
`
`hearing.
`
`t Purchaser
`file a separate
`again or
`this Complaint
`to amend
`the right
`reserves
`with Purchaser's
`succeed in interfering
`unfair bitsiness
`should Seller
`pracdces
`and the third party to which Purchaser
`the Premises.
`intends to sell
`America
`
`action
`contractual
`
`for
`
`tortious
`relationship
`
`and
`interference
`with Bank of
`
`9
`
`9 of 22
`
`

`

`FILED: ORANGE COUNTY CLERK 07/18/2020 11:21 AM
`NYSCEF DOC. NO. 6
`
`INDEX NO. EF002960-2020
`
`RECEIVED NYSCEF: 07/18/2020
`
`47.
`
`The
`
`preliminary
`
`site plan
`
`approval
`
`required
`
`Purchaser
`
`to satisfy
`
`certain
`
`canditions
`
`before
`
`site
`
`plan
`
`approval
`
`would
`
`be granted,
`
`thereby
`
`permitting
`
`Purchaser
`
`to
`
`proceed
`
`with
`
`its
`
`development
`
`plans.
`
`48.
`
`However,
`
`COVID-19
`
`struck
`
`before
`
`Purchaser
`
`could
`
`satisfy
`
`all
`
`of
`
`the
`
`conditions
`
`and obtain
`
`final
`
`site
`
`plan
`
`approval.
`
`49.
`
`Effective
`
`March
`
`President
`
`declared
`
`pandemic
`
`1, 2020,
`
`Trump
`
`the COVID-19
`
`to be
`
`a national
`
`sum,uof,
`
`and
`
`effective
`
`March
`
`7,
`
`2020,
`
`Governor
`
`Cuomo
`
`declared
`
`a Disaster
`
`Emergency
`
`in the State
`
`of New York.
`
`On or about March
`
`13, 2020,
`
`the Town
`
`of Wallkill
`
`declared
`
`a state
`
`of emergency
`
`as well,
`
`which
`
`was
`
`subsequently
`
`extended
`
`multiple
`
`times
`
`into
`
`June
`
`2020.
`
`50.
`
`As
`
`a result
`
`of
`
`these
`
`declarations,
`
`virtually
`
`all
`
`nonessential
`
`business
`
`came
`
`to a halt
`
`and
`
`in the Town
`
`of Wallkill.
`
`nationwide,
`
`in New York,
`
`5 1.
`
`Among
`
`many
`
`other
`
`things,
`
`the
`
`Governing
`
`Bodies
`
`suspended
`
`their
`
`approval
`
`processes
`
`for
`
`approximately
`
`60
`
`days,
`
`which
`
`made
`
`Purchaser's
`
`ability
`
`to obtain
`
`the
`
`necessary
`
`approvals
`
`temporarily
`
`impossible,
`
`through
`
`no fault
`
`of
`
`its own.
`
`52.
`
`Accordingly,
`
`the
`
`contingency
`
`established
`
`under
`
`Section
`
`24
`
`of
`
`the Rider,
`
`and
`
`its
`
`duration
`
`effected
`
`under
`
`Section
`
`25, was
`
`extended
`
`by approximately
`
`60 days,
`
`through
`
`August
`
`18,
`
`2020,
`
`the New Drop
`
`Dead
`
`Date.
`
`53.
`
`Despite
`
`these
`
`well-known
`
`delays,
`
`Seller
`
`never
`
`indicated
`
`that
`
`time
`
`was
`
`of
`
`the
`
`essence
`
`for
`
`the closing.
`
`54.
`
`Purchaser
`
`continued
`
`diligently
`
`to pursue
`
`site plan
`
`approval
`
`during
`
`the shutdown
`
`to
`
`the. best
`
`of
`
`its ability,
`
`and made
`
`more
`
`progress
`
`as the Town
`
`of Wallkill
`
`began
`
`slowly
`
`resuming
`
`business
`
`activities.
`
`10
`
`10 of 22
`
`

`

`FILED: ORANGE COUNTY CLERK 07/18/2020 11:21 AM
`NYSCEF DOC. NO. 6
`
`INDEX NO. EF002960-2020
`
`RECEIVED NYSCEF: 07/18/2020
`
`55.
`
`On
`
`June
`
`7, 2020
`
`-
`
`11 days
`
`before
`
`the Original
`
`Drop
`
`Dead
`
`Date
`
`-
`
`Purchaser's
`
`counsel
`
`notified
`
`Seller's
`
`counsel
`
`by e-mail
`
`that
`
`Purchaser
`
`was
`
`ready,
`
`willing,
`
`and
`
`able
`
`to close,
`
`but
`
`proposed
`
`a mid-July
`
`closing
`
`date
`
`so that Seller
`
`could
`
`satisfy
`
`its obligations
`
`under
`
`the Coñtract
`
`of Sale
`
`and Rider
`
`and
`
`prepare
`
`its documentation:
`
`We are looking
`mid
`at a closing
`things
`there
`were
`a number
`of
`wanted
`to be sure
`you
`had
`plenty
`to start
`reviewed
`end.
`I'm happy
`
`July
`for
`
`- probably
`Seller
`to deal
`The
`of notice.
`Seller
`documents
`
`the
`between
`with
`under
`approvals
`as soon
`
`I know
`and 21st.
`15th
`so I
`the Agreement,
`are now in hand
`on our
`are prepared.
`as they
`
`A true
`
`and
`
`accurate
`
`copy
`
`of
`
`this
`
`e-mail
`
`is attached
`
`hereto
`
`and made
`
`a part
`
`hereof
`
`as Exhibit
`
`E
`
`(emphasis
`
`added).
`
`56.
`
`In
`
`response
`
`to
`
`Purchaser's
`
`counsel's
`
`June
`
`7,
`
`2020
`
`communication,
`
`after
`
`apologizing
`
`for
`
`his
`
`own
`
`COVID-19-related
`
`delays,
`
`Seller's
`
`counsel
`
`responded
`
`enthnciastically:
`
`news!
`
`Now that
`
`you
`
`have
`
`told me your
`
`client's
`
`site
`
`plan
`
`is approved
`
`I will
`
`"Great
`
`clients
`
`know!"
`
`See id,
`
`finally
`
`let my
`
`57.
`
`Relying
`
`in good
`
`faith
`
`on Seller's
`
`counsel's
`
`response,
`
`Purchaser
`
`proceeded
`
`toward
`
`a closing
`
`in mid-July,
`
`past
`
`the Original
`
`Drop
`
`Dead Date
`
`of June
`
`18, 2020,
`
`but well
`
`within
`
`the New
`
`Drop
`
`Dead Date
`
`of August
`
`18, 2020.
`
`58.
`
`At
`
`no point
`
`prior
`
`to the Original
`
`Drop
`
`Dead Date
`
`did Seller
`
`ever
`
`indicate
`
`that a mid-
`
`July
`
`closing
`
`was
`
`unacceptable
`
`or
`
`that
`
`time
`
`was
`
`of
`
`the essence.
`
`Seller
`
`Refuses
`
`to Close
`
`59.
`
`Almost
`
`two weeks
`
`after
`
`Purchaser
`
`proposed
`
`a mid-July
`
`closing
`
`and after
`
`the
`
`close
`
`of business
`
`on
`
`the Original
`
`Drop
`
`Dead
`
`Date
`
`of
`
`June
`
`18,
`
`2020,
`
`Romero,
`
`purporting
`
`to act
`
`on
`
`behalf
`
`of Seller
`
`despite
`
`serving
`
`as Purchaser's
`
`broker
`
`in the transaction,
`
`sent an e-mail
`
`to Purchaser
`
`informing
`
`it
`
`that Seller
`
`would
`
`not
`
`close.
`
`11
`
`11 of 22
`
`

`

`FILED: ORANGE COUNTY CLERK 07/18/2020 11:21 AM
`NYSCEF DOC. NO. 6
`
`INDEX NO. EF002960-2020
`
`RECEIVED NYSCEF: 07/18/2020
`
`60.
`
`As noted
`
`above,
`
`Purchaser
`
`had previously
`
`received
`
`notice
`
`from
`
`Seller
`
`stating
`
`that
`
`Romero
`
`did
`
`not
`
`represent
`
`its interests
`
`in this
`
`transaction.
`
`61.
`
`Romero
`
`asserted
`
`two
`
`bases
`
`for Seller's
`
`refusal
`
`to close:
`
`First,
`
`that Purchaser
`
`failed
`
`to notify
`
`Seller
`
`that
`
`it had
`
`obtained
`
`site
`
`plan
`
`approval
`
`in December
`
`2019
`
`and
`
`to close
`
`within
`
`60
`
`days
`
`of obtaining
`
`such
`
`approval.
`
`Second,
`
`that Purchaser
`
`was
`
`closing
`
`outside
`
`of
`
`the Original
`
`Dead
`
`Date.
`
`A true
`
`and
`
`securatc
`
`copy
`
`of Romero's
`
`e-mail
`
`is attached
`
`hereto
`
`as Exhibit
`
`F.
`
`62.
`
`Romero
`
`also
`
`indicated
`
`in his email
`
`that
`
`he and Seller
`
`knew
`
`that Purchaser
`
`iñtêñded
`
`Drop
`
`to "flip
`
`the
`
`development
`
`for
`
`profit."
`
`63.
`
`By
`
`the
`
`time
`
`of Romero's
`
`email,
`
`after
`
`the
`
`close
`
`of
`
`business
`
`on June
`
`18, 2020,
`
`the
`
`Original
`
`Drop
`
`Dead Date,
`
`and eleven
`
`days
`
`after
`
`Purchaser
`
`informed
`
`Seller
`
`that
`
`it
`
`intended
`
`to close
`
`too
`
`the
`
`in mid-July
`
`so that Seller
`
`could
`
`satisfy
`
`its own
`
`obligations,
`
`it was
`
`late to close
`
`on or before
`
`Original
`
`Drop
`
`Dead
`
`Date.
`
`That
`
`was
`
`plainly
`
`Seller's
`
`intent.
`
`64.
`
`As
`
`noted
`
`above,
`
`Romero
`
`did
`
`not
`
`have
`
`Seller's
`
`authority
`
`to act
`
`on its behalf,
`
`and
`
`thus
`
`his
`
`purported
`
`disavowal
`
`of
`
`the Contract
`
`of Sale was without
`
`force
`
`or effect.
`
`In any
`
`event,
`
`Romero
`
`never
`
`purported
`
`to cancel
`
`the Contract
`
`and Sale
`
`and Rider
`
`pursuant
`
`to Section
`
`25 thereof,
`
`stated
`
`that Seller
`
`would
`
`not
`
`close.
`
`but
`
`rather merely
`
`65.
`
`Shortly
`
`after
`
`Romero's
`
`June
`
`18,
`
`2020
`
`communication
`
`with
`
`Purchaser,
`
`Seller's
`
`principal
`
`communicated
`
`to Purchaser's
`
`principal
`
`that Seller
`
`wanted
`
`an additieñal
`
`$450,000
`
`in order
`
`to close.
`
`66.
`
`Nevertheless,
`
`given
`
`that Romero
`
`purported
`
`to act on behalf
`
`of Seller,
`
`on June
`
`19,
`
`2020,
`
`counsel
`
`for Purchascr
`
`responded
`
`in detail
`
`by
`
`letter
`
`to Mr. Romero
`
`and
`
`to Seller. A true
`
`and
`
`accurate
`
`copy
`
`of
`
`that
`
`letter
`
`is attached
`
`hereto
`
`and made
`
`a part.hereof
`
`as Exhibit
`
`G.
`
`12
`
`12 of 22
`
`

`

`FILED: ORANGE COUNTY CLERK 07/18/2020 11:21 AM
`NYSCEF DOC. NO. 6
`
`INDEX NO. EF002960-2020
`
`RECEIVED NYSCEF: 07/18/2020
`
`67.
`
`Purchaser
`
`raised
`
`all
`
`of
`
`the
`
`points
`
`raised
`
`herein,
`
`among
`
`others,
`
`and
`
`requested
`
`that
`
`Seller
`
`confirm
`
`by
`
`June
`
`22,
`
`2020,
`
`that
`
`it would
`
`comply
`
`with
`
`its obligations
`
`under
`
`the Contract
`
`of
`
`Sale and Rider,
`
`or Purchaser
`
`would
`
`have
`
`no choice
`
`but
`
`to file
`
`an action
`
`for âñticipatõi
`
`y breach
`
`and
`
`seek
`
`specific
`
`performance,
`
`as permitted
`
`by Section
`
`17 of
`
`the Rider.
`
`68.
`
`In addition,
`
`Purchaser
`
`enclosed
`
`a Utility
`
`Disconnect
`
`Letter
`
`that Seller
`
`was
`
`required
`
`that Seller
`
`it.
`
`to execute
`
`and requested
`
`execute
`
`69.
`
`Seller
`
`refused
`
`to
`
`confirm
`
`that
`
`it would
`
`comply
`
`with
`
`its
`
`obligations
`
`under
`
`the
`
`Contract
`
`of Sale,
`
`and has
`
`likewise
`
`refused
`
`to execute
`
`the Utility
`
`Disconnect
`
`Letter,2
`
`70.
`
`As
`
`such,
`
`Purchaser
`
`filed
`
`its original
`
`Complaint
`
`in this matter
`
`on June
`
`24, 2020
`
`and
`
`a Notice
`
`of Pendency
`
`on
`
`June
`
`26,
`
`2020,
`
`and
`
`served
`
`Seller
`
`with
`
`process
`
`on
`
`June
`
`26,
`
`2020.
`
`Purchaser's
`
`counsel
`
`sent
`
`copy
`
`of
`
`the Complaint
`
`and Notice
`
`of Pendeñey
`
`to Seller's
`
`a courtesy
`
`counsel
`
`on June
`
`26,
`
`2020
`
`as well.
`
`A true
`
`and
`
`accurate
`
`copy
`
`of
`
`the
`
`letter
`
`enclosing
`
`the
`
`courtesy
`
`copies
`
`is attached
`
`hereto
`
`as Exhibit
`
`H.
`
`71.
`
`On June
`
`29, 2020
`
`- more
`
`than
`
`three weeks
`
`after
`
`Purchaser
`
`informed
`
`Seller
`
`that
`
`it
`
`intended
`-
`
`new counsel
`
`to close
`
`in mid-July
`
`(to which
`
`Seller
`
`did
`
`not object)
`
`and after
`
`the instant
`
`lawsuit
`
`was
`
`filed
`
`for Seller
`
`responded
`
`by
`
`letter
`
`to Purchaser's
`
`counsel
`
`with
`
`a series
`
`of new purported
`
`close
`
`and
`
`(for
`
`the
`
`first
`
`to give
`
`groüñds
`
`for
`
`Seller's
`
`failure
`
`to
`
`purporting
`
`time)
`
`notice
`
`that
`
`the
`
`Contract
`
`of Sale
`
`and Rider
`
`had
`
`been
`
`cancelled
`
`by Seller
`
`under
`
`Section
`
`25 of
`
`the Rider.
`
`A true
`
`and
`
`accurate
`
`copy
`
`of
`
`this
`
`letter
`
`is attached
`
`hereto
`
`and made
`
`a part
`
`hereof
`
`as Exhibit
`
`1.
`
`72.
`
`First,
`
`Seller
`
`asserted
`
`that
`
`it did not
`
`consent
`
`to the assignment
`
`ofthe
`
`Contract
`
`of Sale
`
`to Purchaser,
`
`therefore
`
`Pürchaser
`
`had
`
`no standing
`
`to assert
`
`rights
`
`under
`
`the Contract
`
`of Sale.
`
`2 As a result of
`the latter, unlessSeller
`extension
`to an additional
`day-by-day
`to Section 25 of
`pursuant
`the Rider.
`
`Letter by July 3, 2020, Purchaser will be entitled
`the Utility Disconnect
`executes
`such Letter
`18, 2020, until
`the drop dead date, beyond August
`is executed,
`of
`
`13
`
`13 of 22
`
`

`

`FILED: ORANGE COUNTY CLERK 07/18/2020 11:21 AM
`NYSCEF DOC. NO. 6
`
`INDEX NO. EF002960-2020
`
`RECEIVED NYSCEF: 07/18/2020
`
`73.
`
`Second,
`
`Seller
`
`accused
`
`Purchaser
`
`of
`
`having
`
`"colluded
`
`to
`
`defraud
`
`[Seller]"
`
`--
`
`apparcñtly
`
`by
`
`preparing
`
`a development
`
`plan
`
`for
`
`the
`
`Premises,
`
`just
`
`as
`
`the
`
`Contract
`
`of
`
`Sale
`
`contemplated.
`
`74.
`
`Third,
`
`Seller
`
`repeated
`
`Romero's
`
`assertion
`
`that Purchaser
`
`concealed
`
`from Seller
`
`that
`
`it
`
`had
`
`obtained
`
`site
`
`plan
`
`approval
`
`as
`
`required
`
`by
`
`Paragraph
`
`26
`
`of
`
`the Rider,
`
`which
`
`Seller
`
`of
`
`Contract,"
`
`but
`
`also
`
`fraud,"
`
`characterized
`
`not
`
`only
`
`as an "unequivocal
`
`breach
`
`the
`
`"outright
`
`a
`
`strange
`
`accusation
`
`given
`
`that
`
`the
`
`preliminary
`
`site
`
`plan
`
`approval
`
`was
`
`granted
`
`as a public
`
`meeting
`
`and formalized
`
`in a public
`
`resolution.
`
`In other
`
`words,
`
`nothing
`
`was
`
`concealed.
`
`75.
`
`Fourth,
`
`Seller
`
`asserted
`
`that Purchaser
`
`failed
`
`to meet
`
`an "absolute
`
`'Drop
`
`Dead'
`
`date"
`
`which
`
`it asserted
`
`was
`
`June
`
`16, 2020
`
`(meaning
`
`that
`
`in its own
`
`view,
`
`Romero
`
`did
`
`not
`
`object
`
`to the
`
`until
`
`days
`
`after
`
`the Original
`
`Date).
`
`proposed
`
`mid-July
`
`closing
`
`two
`
`Drop
`
`Dead
`
`76.
`
`Having
`
`never
`
`before
`
`informed
`
`Purchaser
`
`that
`
`time
`
`was
`
`of
`
`the
`
`essence
`
`or
`
`that
`
`it
`
`believed
`
`a closing
`
`in mid-July
`
`would
`
`be untimely,
`
`Seller's
`
`purported
`
`cancellatioñ
`
`was made
`
`in bad
`
`faith.
`
`77.
`
`The
`
`aforesaid
`
`June
`
`29,
`
`2020
`
`letter
`
`from
`
`Seller's
`
`counsel
`
`was
`
`ineffective
`
`to cancel
`
`the Contract
`
`of Sale
`
`and Rider.
`
`78.
`
`Because
`
`(1) Seller
`
`never
`
`took
`
`the position
`
`that
`
`the Original
`
`Drop
`
`Dead
`
`Date was
`
`of
`
`the essence,
`
`(ii) Seller
`
`responded
`
`through
`
`counsel
`
`affirmatively
`
`(and
`
`enthusiastically)
`
`with
`
`respect
`
`to a proposed
`
`mid-July
`
`closing,
`
`(iii)
`
`Seller
`
`never
`
`objedted
`
`to a mid-July
`
`closing
`
`until
`
`after
`
`close
`
`of
`
`business
`
`on
`
`the Original
`
`Drop
`
`Dead
`
`Date
`
`(or
`
`two
`
`days
`
`after
`
`the Original
`
`Drop
`
`Dead
`
`Date,
`
`according
`
`to Seller's
`
`counsel),
`
`and (iv)
`
`the Original
`
`Drop Dead Date was
`
`extended
`
`due to COVID-
`
`19 to the New Drop
`
`Dead
`
`Date
`
`of at
`
`least
`
`August
`
`18, 2020,
`
`Purchaser
`
`provided
`
`formal
`
`notice
`
`to
`
`14
`
`14 of 22
`
`

`

`FILED: ORANGE COUNTY CLERK 07/18/2020 11:21 AM
`NYSCEF DOC. NO. 6
`
`INDEX NO. EF002960-2020
`
`RECEIVED NYSCEF: 07/18/2020
`
`Seller
`
`on
`
`July
`
`10, 2020
`
`that
`
`it would
`
`be closing
`
`on the Premises
`
`on July
`
`16, 2020
`
`A true
`
`and
`
`accurate
`
`copy
`
`of
`
`this Notice
`
`is attached
`
`hereto
`
`and made
`
`a part
`
`hereof
`
`as Exhibit
`
`J.
`
`79.
`
`On July
`
`16, 2020,
`
`Purchaser
`
`appeared
`
`for
`
`the closing,
`
`funded
`
`the transaction,
`
`and
`
`was
`
`ready,
`
`willing,
`
`and able
`
`to purchase
`
`the Premises
`
`on that
`
`date
`
`(as
`
`it had
`
`been
`
`on or before
`
`the
`
`Original
`
`Dead
`
`but Seller
`
`defaulted
`
`and did
`
`the sale
`
`did
`
`close.
`
`Drop
`
`Date),
`
`not appear,
`
`and thus
`
`not
`
`80.
`
`Indeed,
`
`just
`
`two
`
`days
`
`before
`
`the July
`
`16, 2020
`
`closing,
`
`Seller's
`
`counsel
`
`stated
`
`that
`
`Seller
`
`now wanted
`
`$850,000
`
`to close
`
`on the
`
`sale.
`
`Seller's
`
`Asserted
`
`Grounds
`
`For
`
`Not Closing
`
`Are
`
`Not
`
`Viable
`
`81.
`
`None
`
`of Seller's
`
`asserted
`
`grounds
`
`for
`
`not
`
`closing
`
`is viable.
`
`All
`
`of
`
`those
`
`grounds
`
`were
`
`asserted
`
`in bad
`
`faith.
`
`82.
`
`Seller's
`
`assertion
`
`that Purchaser
`
`to assert
`
`rights
`
`under
`
`has no standing
`
`the Contract
`
`of Sale
`
`due
`
`to Section
`
`1I
`
`of
`
`the Rider
`
`which
`
`prohibits
`
`assignments
`
`without
`
`Seller's
`
`consent
`
`is
`
`frivolous
`
`because
`
`Section
`
`29
`
`of
`
`the
`
`Rider
`
`expressly
`
`authorized
`
`Middletown-WaIIkill
`
`Realty
`
`Partners
`
`to assign
`
`the Contract
`
`of Sale
`
`to an affiliate
`
`as long
`
`as there
`
`is no change
`
`of control
`
`of
`
`the
`
`purchase.
`
`Purchaser
`
`is an affiliate
`
`of Middletown-Wallkill
`
`Realty
`
`Partners
`
`with
`
`comun
`
`control,
`
`as Seller
`
`well
`
`knows
`
`(and
`
`as Seller
`
`disclosed
`
`to Purchaser).
`
`was
`
`required
`
`to
`
`83.
`
`Seller's
`
`assertion
`
`that
`
`Purchaser
`
`notify
`
`Seller
`
`when
`
`it obtained
`
`preliñiiñary
`
`site plan
`
`approval
`
`from the Town
`
`of Wallkill
`
`Planning
`
`Boird
`
`in December
`
`2019
`
`also
`
`misses
`
`the mark.
`
`84..
`
`Although
`
`the
`
`term
`
`"site
`
`plan
`
`approval"
`
`is not
`
`defined
`
`in the Contract
`
`of Sale
`
`or
`
`Rider,
`
`that
`
`term is defined
`
`in Article
`
`XI,
`
`Section
`
`249-40
`
`of
`
`the Town
`
`of Wallkill
`
`Zoning
`
`Code
`
`(the
`
`"Wallkill
`