September 23, 2016 – Crosby & Higgins LLP Successfully Defeats Motion to Dismiss on Behalf of Real Estate Brokerage Firm in Commercial Division
September 23, 2016
Crosby & Higgins LLP has successfully defeated a motion to dismiss in New York County Supreme Court, Commercial Division, in an action brought on behalf of its client, a New York State real estate brokerage firm, arising out of the defendants’ alleged fraudulent conduct and repeated breaches of an exclusive and a co-exclusive brokerage agreement (Atlas New York Ltd. Liability Co. v. Eisenberg, 2016 WL 5394202 (N.Y.Sup.), 2016 N.Y. Slip Op. 31778(U)). The complaint alleges, among other things, that defendants breached the parties’ agreements by marketing the rental units in question as short-term rentals (i.e., less than 30 days) in violation of the New York State Multiple Dwelling Law (“MDL”), which requires that certain dwellings be strictly used for “permanent residence purposes.” In its motion to dismiss, defendants claimed that plaintiff, a limited liability company, could not hold a valid real estate broker’s license under its registered trade name. According to defendants, the LLC should have been named on the license. In denying the motion, the court rejected defendants’ argument, holding that plaintiff’s licensing was “valid.” The case is pending before Justice Scarpulla in the New York County Supreme Court, Commercial Division, Atlas New York Limited Liability Company, d/b/a Atlas Real Estate New York v. Michael Eisenberg, Eisenberg Exclusives, and Furnished Habitat, Inc., Index No.: 650553/2016 (N.Y. Sup. 2016).