In a heated disputed between two members of a real estate holding company, Adam Leitman Bailey successfully defended their client’s petition against a procedural motion to dismiss, thereby leaving only respondent’s baseless merits arguments.

The LLC at issue was originally formed in 2013 between petitioner and respondent to purchase and manage a commercial property, with both parties holding 50% interests and respondent acting as the managing partner.  Unfortunately, the relationship between the parties quickly became contentious, with respondent refusing to provide information to petitioner, including important financial information.  Respondent also completely disregarded both petitioner’s input and corporate requirements, including unilaterally deciding to obtain an additional mortgage on the property without consulting petitioner.  Even when it became clear that the parties wanted to go their separate ways, respondent’s autocratic style thwarted consummation of a deal that would remove petitioner from the company.   

Adam Leitman Bailey, P.C. filed a petition seeking, among other things, for respondent to finally provide petitioner with a full and complete accounting of the company, for the property to be sold, and for a receiver to take over that sale, or to have the company liquidated.

Respondent filed a motion to dismiss on purely procedural grounds, which Adam Leitman Bailey, P.C. vigorously opposed.  The Court agreed with Adam Leitman Bailey, P.C. and found for petitioner very quickly, leaving respondent to fight only on the merits.  Given the strength of petitioner’s arguments on the merits, this is a substantial victory, and Adam Leitman Bailey, P.C. is excited to have the opportunity to assist this client to escape this dysfunctional business relationship.