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Adam Leitman Bailey, P.C. Fall 2019 Newsletter

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Adam Leitman Bailey, P.C. Fall 2019 Newsletter

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Adam Leitman Bailey, P.C. Fall 2019 Newsletter

  1. 1. FALL 2019 (212) 825-0365 ADAM LEITMAN BAILEY, P.C. WWW.ALBLAWFIRM.COM Read more online at alblawfirm.com/trailblazer In May 2019, attorney and partner Carolyn Rualo, of Adam Leitman Bailey, P.C., was named a Trailblazer by the New York Law Journal. She has been recognized for her unconventional approaches in handling complex landlord-tenant negotiations with the New York City Department of Housing Preservation and Development and has been acknowledged for her innovative and forehand- ed outlook on the upcoming rent regulation reform. Congratulations Carolyn! PIONEER SPIRIT Carolyn Rualo, a partner in the land- lord-tenant group at Adam Leitman Bailey, P.C. often negotiates on a client’s behalf directly with the New York City Department of Housing Preservation and Development. It’s faster – and usually more effective, – than rushing to a judge for a temporary restraining order and then trying to settle a dispute in court. The direct approach, however, can be tougher than litigation. “It’s not an easy thing to get a city employee – or the right city employee – on the phone. Part of the art is getting in front of the right people, then communicating your cause quickly.” TRAILS BLAZED Rualoleanstowardunconventionalapproach- es whenever possible. That’s how she helped a client, the owner of half a dozen apartment buildings heated by a single boiler. A malfunc- tion left the buildings without heat or hot water. The city said it would send its own contrac- tor to perform emergency repairs, but the city contractor’s fees could have been three times the market rate. Rualo made her case over the phone to the city employee overseeing the latter, pointing out that her client had already started the repairs which would be completed shortly. The city backed down. “It can save my client a good amount of money in ligation later.” FUTURE EXPLORATIONS Rualo is gearing up for major reform in the state’s rent regulation laws, due out this summer. Currently a landlord can invest in major capital... CAROLYN Z. RUALO NAMED TRAILBLAZER LANDLORD & TENANT/HPD In the practice of real estate law today, very few legal issues are getting as much attention and at the same time being applied incorrectly by practitioners as anticipatory repudiation (or breach) of contract. To test this thesis, we ran a Westlaw search using the search term “antic- ipatory repudiation in the real property practice area,” and, since 2008, 30 decisions have been rendered compared with a total of 58 decisions from 1920–2007. This article attempts to deliv- er the rules of anticipatory repudiation and to discard the myths and mistruths. This is tricky legal territory. Whether a party has anticipatorily breached the contract is not always easy to determine, and, in some cases, the tables may be turned with the court dismiss- ing a party’s allegations of anticipatory breach by the other party to the contract, but finding instead that it was the party’s own conduct that constituted a prior anticipatory repudiation of the contract, thereby entitling judgment to be entered in favor of its adversary. The judgment in each case is more often based upon the specific facts of the matter and not solely upon the elements prescribed by law. ANTICIPATORY BREACH DEFINED As the New York Court of Appeals has succinctly stated, “An anticipatory breach of contract by a promisor is a repudiation of [a] contractual duty before the time fixed in the contract for…performance has arrived.” Princes Point LLC v. Muss Dev. LLC, 30 N.Y.3d 127, 133 (2017). Clearly, an “anticipatory” breach cannot be committed by a party already in materi- al breach of an executory contract. See, e.g., Kaplan v. Madison Park Group Owners, LLC, 94 AD3d 616, 618, 942 NYS2d 522, 524 (1st Dept. 2012)... ANTICIPATORY REPUDIATION OR BREACH OF CONTRACTS: THE RULES AND TRUTHS John Desiderio LANDLORD & TENANT Read more online at alblawfirm.com/anticipatory- repudiation Read more online at alblawfirm.com/current-state- of-attorneys-fees Arecent decision of the Appellate Division, First Department, Krodel v. Amalgamated Dwellings, Inc., 166 A.D.3d 412, 88 N.Y.S.3d 31 (2018) inspires us to reexamine New York’s doctrine about recovering attorneys fees in liti- gation. Krodel itself explores a corner of the “American Rule” that holds that one cannot recover attorneys fees from an adversary in litigation absent an authorizing statute, rule, or contract and finds that under certain circum- stances, contract provisions authorizing the fees are unconscionable. With that boundary point established, older case law fills in when such contract clauses will receive enforcement. AMERICAN RULE Under the American Rule, “attorneys’ fees and disbursements are incidents of litigation and the prevailing party may not collect them from the loser unless an award is authorized by agreement between the parties or by statute or court rule.” Matter of A.G. Ship Maintenance Corp. v. Lezak, 69 N.Y.2d 1, 5, 503 N.E.2d 681, 511 N.Y.S.2d 216 (1986). In landlord tenant litigation, one of the richest sources of attor- neys’ fee law, some few statutes award attor- neys fees in particularized situations, such as RPL §227-d that awards such fees for hous- ing discrimination against victims of domes- tic violence; RPL §237-a awarding the fees to victims of discrimination against children in housing; and RPL §226-b awarding the fees to a tenant when a landlord has unreasonably withheld consent to a residential subletting. The general attorneys fee provision in land- lord tenant litigation is RPL §234 that reads into the lease a right to attorneys fees when the residential lease grants landlord such a right in litigation with the tenant. CENTRAL RELIEF In Murphy v. Vivian Realty Co... THE CURRENT STATE OF ATTORNEYS FEES Dov Treiman LANDLORD & TENANT/DHCR
  2. 2. 2 FALL 2019 (212) 825-0365 3WE GET RESULTSWWW.ALBLAWFIRM.COM ADAM LEITMAN BAILEY, P.C. NEW YORK REAL ESTATE ATTORNEYS THE GREAT DEBATE: REAL ESTATE EXPERTS CLASH WITH POLITICIANS AT PANEL LANDLORD REPRESENTATION In 159 MP Corp. v. Redbridge Bedford, LLC, — N.E.3d —-, 2019 WL 1995526 (N.Y.), 2019 N.Y. Slip Op. 03526, a monumental decision that was issued last week, a sharply divided (4-3) Court of Appeals ruled that a commercial tenant waives the right to seek a Yellowstone injunction where its lease contains a specific waiver provision covering “declaratory judg- ment actions.” For over half a century, the Yellowstone injunction has served as the commercial tenant’s most powerful sword when faced with eviction, which, at least according to the dissenting opinion in 159 MP Corp., may now be totally eviscerated. THE ‘YELLOWSTONE’ INJUNCTION The Yellowstone injunction was espoused by the Court of Appeals in First National Stores v. Yellowstone Shopping Center, 21 N.Y.2d 630 (1968), which held that a commercial tenant is entitled to a Yellowstone injunction where the tenant: (1) holds a commercial lease; (2) received from the landlord a notice of default, a notice to cure, or a threat of termination of the lease... BYE-BYE ‘YELLOWSTONE’? In the next two weeks, state lawmakers are expected to pass the most sweeping rent regulation reform package in decades. It has the city’s real estate industry pining for the slightly older days, when Michael Bloomberg held court at City Hall and the knives weren’t out for multifamily landlords At a Thursday morning rent regulation panel discussion between industry players and local politicians, Council member Mark Levine said it was a myth that the progressive takeover of the City Council in 2013 stifled development. “Even the valuation of multifamily hous- ing continues to be robust,” he said. “There’s something to learn from all that, which is we can be a fairer city and continue to prosper.” Real estate attorney Adam Leitman Bailey was blunt in his response. “All of those things that Councilman Levine mentioned are not the result of this mayor or this council or this assembly,” he said to applause. “They’re the result of the years of Mayor Bloomberg and his administration. And as much as this administration is trying to rip those apart,” he continued, “we’re still hanging on by tethers.” Leitman Bailey also said the current set of rent regulations, mostly passed between 1969 and 1974, are outdated. “The system is broken,” he said. “The system is dangerous. The system is a waste of time and money. It’s a horrible system.” The panel took place at the Harmonie Club, with Marcus & Millichap’s Andrew Dansker serving as moderator. Other panelists includ- ed New York state Sen. Brian Benjamin, attor- ney Susan Baumel-Cornicello and Marcus & Millichap’s Shaun Riney. The discussion was largely civil overall, although Levine joked that he and Benjamin showed up wearing bulletproof vests, and a remark from Benjamin about how Republicans had long been in control of the state Senate was met with applause. Benjamin, who worked at the real estate firm Genesis before coming to the State Senate as Jeffrey Metz, Colin Kaufman, Scott Pashman and Thomas Furst, on behalf of Adam Leitman Bailey, P.C., successfully resolved liti- gation to enforce a commercial tenant’s right of first refusal, achieving for its client in settle- ment all the relief that could have been hoped for had victory been obtained at trial. The Firm’s client was the triple-net tenant of a 3-story, mixed-use building in Manhattan’s Bowery neighborhood since the year 2000, where the client operated a restaurant furniture supply business on the ground floor and resid- ed with family members on the floors above. The client’s lease contained a right of first refusal clause which provided that, if the land- lord accepted an offer to sell the building to a purchaser during the lease term, the client had the right to receive notice of the proposed sale and the right to purchase for the gross purchase price and on the same terms and conditions as in the purchaser’s contract or offer. In 2014, the landlord accepted an offer to sell ADAM LEITMAN BAILEY, P.C. OBTAINS WINNING SETTLEMENT FOR COMMERCIAL TENANT, ENFORCES RIGHT OF FIRST REFUSAL REAL ESTATE LITIGATION the building to a subsidiary of Thor Equities, an international real estate development, leasing, and management firm, for the price of $10.2 million. Instead of giving notice of the proposed sale to the client, however, the landlord mistak- enly gave notice to the prior building tenant under a lease that had been surrendered back in 2000. When the landlord’s error became known to all parties, Thor refused to recognize the client’s right of first refusal and used its leverage to compel the landlord to close on the sale of the building to Thor and to pay Thor $1 million of damages to settle Thor’s claims that the landlord had breached the purchase and sale agreement by failing to correctly identify the building tenant. Every case has bad facts, and this case was no exception. In this case, the Court needed to be persuaded that the client’s tenancy was not invalidated by the fact that... Read more online at alblawfirm.com/enforce- rofr ALBPC SUCCESSFULLY GETS CLIENT ELECTED TO CONDOMINIUM BOARD Read more online at alblawfirm.com/client-elected CONDOMINIUM & COOPERATIVE Upon purchasing and moving into a new condominium in Westchester, New York, our client began to recognize an array of controver- sial actions being made by her condominium’s board of managers. In particular, our client real- ized that the original sponsor of the condomini- um had been dominating and corrupting the board of managers by bullying and intimidating other board members and residents through- out the years since the condominium’s incep- tion. The bully sponsor harassed our client during her move in, threatening legal action over alleged condominium rule “violations,” which did not actually apply and were otherwise non-existent. The firm successfully pushed back against the sponsor’s legal threats against our client, and also learned that the condominium had not been following proper board election proce- dures. We encouraged our client to run for elec- tion herself in an attempt to restore order in the board. Adam Leitman Bailey, P.C. attorney Rachel Sigmund assisted in organizing support for our client’s candidacy and despite the short amount of time that the client had to ensure that the election was properly conducted, with Rachel’s guidance and expertise of condomini- um governance, our client was elected to the board and is now serving as Vice President. Her election replaced the bully on the board who decided not to run again after being frustrat- ed by our client’s successful resistance to the legal issues that board counsel had raised. With our client’s new title of Vice-President and having ALBPC behind her, our client is beginning to address the condominium’s by-law requirements that have been ignored for years. She hopes that her position will allow the board and the condo’s gover- nance to... Our Client, a Fortune 500 company, net-leased or leased an entire building from their landlord. The tenant’s lease was expiring on April 30th. The tenant had leases with over two dozen sub-tenants and many of them, despite having leases end before April 30th, had no intention to move out when the lease ended. The tenant was in a quandary because if they did not evict all of the tenants by April 30th, they would have to pay heavy fines to the landlord for the breach. Second, none of the tenant’s subleases had any strong default provisions incentivizing the sub-tenants to vacate when the lease ended. Against all odds, Adam Leitman Bailey, P.C. was hired to make sure that the building was not only complexly vacant by April 30th, but that the tenants spent the money to restore the premises to its original condition, which for a number of tenants would be a substantial burden. The challenges were plentiful. Although we basically had little recourse against any tenant LANDLORD REPRESENTATION MISSION ACCOMPLISHED: EVICTING OVER TWO DOZEN COMMERCIAL TENANTS BY A DATE CERTAIN OR PAY A MASSIVE AMOUNT OF MONEYMassimo D'Angelo staying past its term, one tenant had diplomat- ic immunity which with the right tenant’s attor- ney could do serious damage to the tenant of record. At the same time, we did not want the tenants to know we were desperate for them to leave on time. We were friendly with the tenant who had immunity’s attorney and explained to him that we would have to run to court early because of lease defaults and we were worried about the tenant’s diplomatic immunity power. As a result, the sub-tenant agreed to give us a document that would allow a warrant to be served in early April and executed on April 30th. This chain of events was a result of having a good reputation in the industry, our straight forward and respectful relationship with the colleague attorney representing the tenants, and a lot of luck. Some of the other tenants smelled money and a lot of it, and they wanted a payout. We let it be known that not one dollar would be paid... a Democrat, repeatedly straddled the fence, saying tenants had to be protected from dramatic rent hikes, but also wanted to ensure that landlords were incentivized to invest in their buildings. He also spoke of bad optics... ALBPC HAS MORE FEMALE “RISING STARS” THAN ANY OTHER NEW YORK METRO AREA REAL ESTATE LAW FIRM RANKINGS, HONORS & AWARDS Read more online at alblawfirm. com/more- female- rising-stars Read more online at alblawfirm.com/evicts- dozens REAL ESTATE LITIGATION Read more online at alblawfirm.com/bye-bye- yellowstone   AMONG THE HIGHEST RATED FIRMS WITH FEWER THAN 30 ATTORNEYS RANKINGS, HONORS & AWARDS Read more online at alblawfirm.com/real- estate-world-clashes Above: Bailey seated between State Senator, Brian Benjamin (left) and City Councilman, Mark Levine (right)
  3. 3. 4 FALL 2019 (212) 825-0365 5WE GET RESULTSWWW.ALBLAWFIRM.COM ADAM LEITMAN BAILEY, P.C. NEW YORK REAL ESTATE ATTORNEYS In the state of New York a New York Mortgage Recording tax is due and payable on each mortgage transaction both for purchases and refinances. The mortgage tax rate varies from county to county. In the five boroughs of New York City the rate is 1.8% on mortgage amounts under $500,000.00 and 1.925% on mortgage amounts above $500,000.00. For refinances, and sometimes on purchases, since the borrow- er has already paid the tax on the outstanding mortgage balance, the state of New York allows Consolidation, Extension and Modification Agreements (“CEMA”) which allows the borrow- er to save a portion of or all of the New York State mortgage tax by only requiring the borrower to pay mortgage tax on the difference between the new loan amount and the unpaid principal balance on their current loan. For example, if I currently owe $400,000.00 and my new loan will be $500,000.00, I will only pay mortgage tax on the difference of $100,000.00. The first step a borrower must take when requesting a CEMA is to make sure the current lender is wiling to assign the borrower’s loan over to the new lender. There is no legal obli- gation on the lender’s part to do so and every lender has their own requirements and fees to process the request. When representing a new lender, our firm handles obtaining this informa- tion on behalf of the borrower. Once a current lender determines it will grant a CEMA, the current lender will locate all of the underlying collateral documents of the current loan, meaning all prior promissory notes, allon- ges/endorsements and recorded documents in the mortgage chain. The next step is for the new lender’s assigned bank attorney to review the underlying collateral documents. This is to ensure each document was properly record- ed, notarized, executed, contains the correct address and all pages are present. The chain of title must accurately flow through the... OVERCOMING OBSTACLES TO SAVE BORROWERS THOUSANDS MORTGAGE FINANCE Read more online at alblawfirm. com/save- borrowers- thousands Read more online at alblawfirm.com/home- promised CONDOMINIUM & COOPERATIVE Adam Leitman Bailey, P.C. took a ferry to its third annual meeting for a condominium development. Consisting of hundreds of newly constructed two-family homes built for moder- ate income persons to revitalize a formerly blighted area of Queens, ALBPC thought about the first tour of the development, asking how a developer could receive so many millions of dollars in governmental subsidies, but not have to provide a home free of defects, some of which simply could not be fixed. As soon as ALBPC was hired, our attorneys attended many meetings, free of charge, to educate the residents on their rights. Most of these first-time home buyers had previously been renters and no longer were handy and available. At the same time, the property was not well-built and persons buying moderate homes in certain price ranges rarely hire engi- neers to inspect homes before purchasing. The last thing our attorneys wanted to do was sue; they knew that once our firm sued there would be no winner. Legal fees are expensive and many of the repairs needed to be fixed... ALBPC SECURES VICTORY FOR TITLE COMPANY IN 100 YEAR OLD EASEMENT ACTION Read more online at alblawfirm. com/krieger- first-american TITLE INSURANCE CLAIMS GROUP In Krieger v. First American Title Insurance Company, Plaintiff alleged that First American failed to disclose the existence of a 100 year old easement which severely depressed the value of his property. Instead of informing First American, Plaintiff sold the property for a reduced value based upon the existence of the easement. Plaintiff then brought an action against First American for breach of contract to produce a marketable and insurable title report, breach of fiduciary duty to deliver a marketable and insurable title, and for attorney fees. ALBPC was retained by First American and immediately strategized and filed a motion to dismiss based upon: (i) the title policy not constituting a promise or guarantee to the Plaintiff that the title to the property is free from any defects; (ii) insurance companies not owing their policyholders a fiduciary duty; and (iii) an insured not being able to recover attorney’s fees against an insurance company to settle any rights under the policy absent a contractual or policy provision permitting same. Furthermore, to the extent that Plaintiff’s complaint could be construed as claiming... JOANNA PECK SPEAKS TO AIANY WOMEN IN ARCHITECTURE COMMITTEE Read online at alblawfirm.com/aiany-women- architecture NEW CONSTRUCTION REPRESENTATION Joanna Peck spoke at the AIANY Women in Architecture Committee’s “The Forensics of Architecture: CSI of Buildings” panel on June 5th, 2019 at the Center For Architecture in New York City. Speaking about the investigative process that forensic architects engage in, Joanna Peck used her real estate litigation experience as well as her three distinct degrees in finance, business, and law to jointly discuss the prob- lems that many buildings face through liabilities along with the strategies that owners could use in order to solve said problems and figure out who to hold accountable. Plaintiffs brought an action against the Defendant, essentially seeking to determine the ownership of a property located in Brooklyn. In this case, both parties were deeded title to the subject property. Because the Defendant recorded its interest first, Plaintiffs assert- ed the following causes of action against the Defendant as a basis to quiet title in Plaintiffs: (1) forgery; (2) adverse possession; (3) equita- ble estoppel; (4) unclean hands; and (5) unjust enrichment. ALBPC was able to secure judg- ment in favor of the Defendant, dismissing each and every one of these claims. As to Plaintiffs’ first cause of action, they claimed that the signatures of the grantors on the Defendant’s deed were forged. However, as ALBPC argued, the grantors’ signatures were notarized, and a notarized instrument raises a presumption of due execution which can only be rebutted with clear and convincing proof. ALBPC WINS SUMMARY JUDGMENT FOR DEFENDANT IN A HEATED TITLE DISPUTE Read more online at alblawfirm.com/heated-title- dispute/ TITLE INSURANCE CLAIMS GROUP In this case, Plaintiffs presented no evidence at all, let alone clear and convincing proof, to support their claim that the Defendant’s Deed was forged. In fact, ALBPC was able to secure the testimony of grantors and of the notary public who nota- rized their signatures, each of whom flatly contradict... Acommercial landlord in Williamsburg recent- ly called upon Adam Leitman Bailey, P.C., to prosecute two commercial holdover proceed- ings in Kings County Civil Court. The tenant occupies two adjacent spaces (governed by two separate leases) in a commer- cial building in Williamsburg from which it operates a supermarket. Several years ago, the landlord served notices to cure on the tenant alleging various lease defaults, includ- ing improper construction and alterations and lack of required permits and approvals for vari- ous work and equipment. As many commercial tenants do, the tenant ran to Supreme Court, commenced a declaratory judgment action and applied for a Yellowstone Injunction to toll the running of the cure period. However, the leases each contained a provi- sion which prohibited the filing of declaratory judgment actions; instead the parties agreed to resolve their issues in a summary proceed- ing. Moreover, pursuant to the lease provi- sion, a violation of the provision was expressly deemed a breach of a substantial obligation of the lease. The Supreme Court dismissed the tenant’s case. The Appellate Division, Second Department affirmed. It had been several years since the notic- es to cure were served. Although the landlord was winning in every Court, stays were in effect precluding prosecution of holdover proceed- ings. Underscoring the need for faster resolu- tion of commercial lease disputes, the tenant continued to operate its business in violation of the lease, including using unlawful HVAC equip- ment. Numerous violations were issued by vari- ous government agencies.  Based on the Appellate Division decision, Adam Leitman Bailey, P.C., pushed the hold- overs forward. The tenant’s leases were termi- nated based on the violations of the... ALBPC WINS JUDGEMENT AFTER TENANT VIOLATES LEASE CLAUSE LANDLORD REPRESENTATION Read more online at alblawfirm. com/non- traditional- family Andrew C. Jorges, Esq., of the Transactional Department at Adam Leitman Bailey, P.C., represented the seller of a multi-million dollar commercial building on Bedford Avenue in the Williamsburg section of Brooklyn, NY. The property, which contains both residential and commercial space, was in high demand because of its location in one of Brooklyn’s most expensive neighborhoods. ALBPC encountered unexpected headwinds during the course of the transaction when the purchaser of the property, a well-known real estate developer, changed the terms of the deal by refusing to sign a contract unless the Seller agreed to deliver the entire premises vacant on or before closing date. Fortunately for the Seller, Vladimir Mironenko, Esq. of the Landlord/Tenant Department at ALBPC sprung into action and immediately served a notice of termination... ALBPC CLOSES $4.35M COMMERCIAL BUILDING PURCHASE & SALE OF HOMES Read more online at alblawfirm.com/4m- commercial-building Adam Leitman Bailey, P.C. obtained a deci- sion from the U.S. Court of Appeals for the Second Circuit affirming that a recorded mort- gage or other real estate document signed before a notary public is valid even where the notary’s “stamp” with his or her name and other identifying information is missing from the recorded copy of the document. An investor purchased a condominium unit at a foreclosure sale, subject to a first posi- tion mortgage on the unit. He then filed a quiet title action seeking to void the first mortgage based on technical defects in how the notari- zation of the mortgage documents appeared in the recorded copies available from the New York City Register. In his most significant claim, he asserted that because the notary’s stamp on the City Register’s scanned copy of the mortgage docu- ments was missing or illegible, the documents were not... SECOND CIRCUIT VICTORY, DOCUMENTS MISSING STAMPS TITLE INSURANCE CLAIMS GROUP Read more online at alblawfirm.com/second- circuit-victory GETTING HOMES PROMISED TO CONDOMINIUM OWNERS
  4. 4. 6 FALL 2019 (212) 825-0365 7WE GET RESULTSWWW.ALBLAWFIRM.COM ADAM LEITMAN BAILEY, P.C. NEW YORK REAL ESTATE ATTORNEYS ADAM LEITMAN BAILEY, P.C. ONE BATTERY PARK PLAZA EIGHTEENTH FLOOR NEW YORK, NEW YORK 10004 Adam Leitman Bailey joined a group of real estate experts in the Bahamas on January 28th, 2019 for The Real Deal’s Future City real estate summit. Mr. Leitman Bailey, speaking on new harrassment laws, new certification of no harassment requirements, and new construc- tion changes in law and regulation among other things, was the thought leader for a session discussing policies that are impacting develop- ers and landlords. ADAM LEITMAN BAILEY SPEAKS AS A THOUGHT LEADER AT THE REAL DEAL’S FUTURE CITY REAL ESTATE LITIGATION Read more online at alblawfirm.com/real- deal-future-city ALBPC DEFEATS FRAUDULENT SIGNATURE CLAIM FOR BANK FORECLOSURE LITIGATION GROUP Read online at alblawfirm.com/ fraudulent-signature-claim Awell-known bakery producing some of the finest breads and pastries in New York was blocked from using most of its property to bake bread and desserts. During the first meeting with the client while going over the government’s objections to the use of the build- ing as a bakery, logic defied the explanations for the denials. The bakery resided in a district that allowed its use to make its produce with- out any special permits. The building complied with all standard governmental requirements. The building appeared to have been construct- ed in accordance with Department of Building requirements. By the time ALBPC was hired, the delay had been going on for three years. ALBPC uncovered a fraud and cover-up. The architectural firm that had caused the objec- tions had covered up the reasons. Second, this firm had been banned from doing business in New York. Third, this firm had been blaming the City for the approval delays and when our attorneys finally contacted our local represen- tatives and the director of the department of buildings our attorneys learned that the delay did not come from the government but from our client’s representative. Meetings that were set up or were supposed to occur never happened. The client was never told the real reasons for the delay. ALBPC visited the Queens Department of Buildings many times and although the archi- tectural firm’s excuses seemed legitimate, the more our attorneys dug into the file and A QUEENS STORY: UNCOVERING A FRAUD, FIXING A BUILDING, AND MAKING THE CLIENT WHOLE FOR ITS LOSSES COMMERCIAL TENANT REPRESENTATION Read more online at alblawfirm.com/bakery-blocked In 2006, Deutsche Bank National Trust’s (“DBNTC”) predecessor in interest lent over $800,000 to Lois Sacks secured by a mort- gage on a property in Sag Harbor, NY, a wealthy community in New York’s storied Hamptons. The mortgage and note were signed under a power of attorney by Robert Sacks, the borrow- er’s son. After default on the mortgage, a fore- closure proceeding was brought by another law firm in 2009 and discontinued in 2010. Sacks brought a quiet title action in 2012 seeking to declare the mortgage invalid, alleging that Robert Sacks had presented a forged Power of Attorney and had no authority to mortgage the premises. Deutsche Bank, by other counsel, counterclaimed for breach of contract based on the mortgage and note and sued Fidelity National Title Insurance Company (“FNTIC”) and others in a third-party action. A default judgment was entered against Deutsche Bank. When Adam Leitman Bailey PC (“ALBPC”) was asked to enter and defend, we were able to vacate the default judgment against DBNTC, to dismiss as to FNTIC and to proceed with discov- ery. ALBPC assigned two former prosecutors to the case who conducted a nationwide investi- gation which revealed a multi- state conspiracy on the part of Robert Sacks and associates to defraud mortgagees and other creditors... Continuing his mission to educate students of all ages, Adam Leitman Bailey took students from his alma-mater, New Milford High School, on a walking history tour around down- town Manhattan. His half-day tour brought the students through one of New York City’s most famous areas giving them a first-hand look at sites such as Alexander Hamilton’s grave, Federal Hall, and the site of the Peter Zenger case. Students commented that they were surprised to learn that there was so much more to the history behind “Hamilton” (the musical). NEW MILFORD STUDENTS ATTEND ANNUAL WALKING HISTORY TOUR COMMUNITY/SPEAKING ENGAGEMENTS ADAM LEITMAN BAILEY VISITS AND READS TO LOCAL SCHOOLS COMMUNITY/SPEAKING ENGAGEMENTS On a mission to spread a love of reading to under-served children, Adam Leitman Bailey personally dedicates hours of his time to read- ing his children’s book, HOME, to students at local elementary schools. This year his HOME book tour took Mr. Bailey to James Madison School and PS191Q, as well as a number of other schools and organizations in and around New York City. Adam Leitman Bailey’s visits to these schools give him the opportunity to sit down with the youth of our communities and teach them about the lessons he writes about in HOME. Mr. Bailey hopes that his readings teach chil- dren the important lesson that it doesn’t matter how big your home is or what it looks like; what matters most is the people who surround and love you. Over a decade ago Adam Leitman Bailey founded the Raymond “Hap” Harrison Scholarship as a part of the Building Foundations organization, to honor his high school cross country and track coach, who inspired him greatly. Since then, the scholar- ship has been awarded each year to recent high school graduates planning to attend college in the fall. This year Adam Leitman Bailey presented the Raymond “Hap” Harrison scholarship to Amaya Nina of New Milford High School and Mariela Lopez of Information Technology High School. During their internships at the firm, the recipi- ents assisted with putting copies of Mr. Bailey’s recent children’s book, HOME, into the hands of several hundred local organizations and schools in underprivileged and underserved areas, helping with legal assignments for the attorneys, and completing other marketing projects. In addition to granting the scholarship each year, Adam Leitman Bailey also invites the winners, new and old, to join him for a luncheon. These luncheons give the students time to talk ADAM LEITMAN BAILEY ANNOUNCES 2019 RAYMOND “HAP” HARRISON SCHOLARSHIP AND JOINS OTHER RECIPIENTS FOR ANNUAL LUNCHEON COMMUNITY/SCHOLARSHIP Read more at buildingfoundationsanddreams. com/raymond-hap-harrison-scholarship with Mr. Bailey, seek advice from him, and network with each other while also giving Mr. Bailey the opportunity to honor their hard work and celebrate their outstanding achievements, both inside and out of the classroom. interviewed relevant parties, our firm knew a fraud was amiss. ALBPC immediately had a tolling agreement signed extending the time to sue the architec- tural firm. Our attorneys discovered that the offices in the space had to be destroyed which had never been relayed to the client while the client could not fully operate its factory losing a large amount of money daily. The lies piled up as well as the losses for our client. At the same time, the client was very happy that progress had been made, the building had not been shaped into compliance with new professionals and business was running at full production. ALBPC carefully documented the intention- al deceit and negligence in detail and careful- ly calculated its losses and was in the process of working with the architectural firm’s insur- ance company to avoid a lawsuit and receive a proper paycheck. Our client was in the process of opening new stores and sent our firm many thank you gifts in the form of bread and pastries. This was one of those feel good stories where as lawyers our firm was worried we would never be able to seek justice for our client and in the end our attor- neys reached a happy ending on many levels. All of the attorneys on the case fell for the client... Read more at buildingfoundationsanddreams. com/book-tour Read more at buildingfoundationsanddreams. com/annual-historical-tour
  5. 5. ADAMLEITMANBAILEY,P.C. OneBatteryParkPlaza,EighteenthFloor NewYork,NY10004 Tel:212-825-0365 Email:info@alblawfirm.com RETURNSERVICEREQUESTED

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