Commercial Real Estate Lawyer in NYC Investment Dispute

An investor entered into a written investment and loan participation agreement with a property holding entity that controlled a ground floor retail condominium unit near Wall Street. 

The agreement provided that the investor would contribute eight hundred thousand dollars in capital, and the entity would use the funds to renovate and lease the premises to a national tenant. 

The contract contained a guaranteed minimum rent provision, which required the entity to remit fixed quarterly returns regardless of vacancy. 

A commercial real estate lawyer in NYC reviewing such an agreement examines the enforceability of rent guarantees under New York contract law and the documentary evidence supporting the transaction.

The property entity initially made partial payments during the first lease year, but it later ceased all distributions, citing cash flow constraints and tenant improvement costs. 

The investor made repeated written demands for payment of both accrued returns and repayment of principal upon maturity. 

The entity did not dispute the written obligation, yet it refused repayment and continued to solicit additional capital from other investors. 

In this context, a commercial real estate lawyer in NYC analyzes whether the conduct constitutes breach of contract, anticipatory repudiation, or potentially fraudulent inducement under New York law.

Under New York law, a plaintiff asserting breach of contract must establish the existence of a valid contract, performance by the plaintiff, breach by the defendant, and resulting damages. 

The written agreement satisfied the statute of frauds under New York General Obligations Law Section 5 701 because it was memorialized in writing and signed by the parties. 

The investor performed by wiring the full eight hundred thousand dollars, and the entity failed to make required payments. 

A commercial real estate lawyer in NYC would seek summary judgment under CPLR 3212 if the documentary evidence conclusively establishes nonpayment.

New York Civil Practice Law and Rules Section 5001 provides for prejudgment interest on breach of contract claims. 

Section 5004 sets the statutory interest rate at nine percent per annum unless the contract provides otherwise. 

In a commercial investment dispute, a commercial real estate lawyer in NYC calculates accrued interest from the date of default and includes it in the complaint. 

If the agreement contains an attorney fee clause, the plaintiff may also recover reasonable legal fees upon prevailing.

The plaintiff files a summons and complaint under CPLR Article 3 and serves the defendant pursuant to the applicable provisions of the CPLR governing commencement and service. 

If the defendant interposes an answer with affirmative defenses, the plaintiff may move to dismiss insufficient defenses under CPLR 3211 or proceed directly to discovery. 

Where the investment agreement and payment records are clear, a commercial real estate lawyer in NYC often files a motion for summary judgment in lieu of complaint under CPLR 3213 if the instrument qualifies as an instrument for the payment of money only.

If the court finds that the entity breached the guaranteed rent and repayment provisions, it may enter judgment for the principal sum of eight hundred thousand dollars plus statutory interest and costs. 

Once judgment is entered, enforcement mechanisms under CPLR Article 52 become available, including restraining notices, property executions, and information subpoenas. 

A commercial real estate lawyer in NYC guides clients through post judgment collection to ensure that a favorable decision results in actual financial recovery.

A thorough review includes examining corporate filings with the New York Department of State, reviewing recorded liens, and analyzing any intercompany transfers that may implicate the New York Debtor and Creditor Law concerning fraudulent conveyances. 

A commercial real estate lawyer in NYC may also assess personal guaranties executed by principals to expand recovery sources. 

Early investigation increases the likelihood of identifying attachable assets before they are dissipated.

In future transactions, investors benefit from escrow arrangements, recorded security interests, and carefully drafted guaranty provisions. 

A commercial real estate lawyer in NYC can structure agreements to include confession of judgment clauses permitted under CPLR 3218, subject to statutory requirements. 

Proactive drafting reduces litigation risk and strengthens enforcement rights in the event of default.

In Manhattan commercial property investments, disputes over guaranteed rent and principal repayment can escalate quickly. 

A commercial real estate lawyer in NYC can evaluate contractual rights, commence Supreme Court litigation, pursue summary judgment, and enforce judgments under New York law. 

While each case depends on specific facts, structured legal action and strategic planning can position investors to recover substantial sums in commercial real estate disputes.