October 28th, 2020

DSB successfully argued an appeal on behalf of an LLC member regarding distribution of over $5 Million in profit from a real estate development.  The lower court had ordered the funds distributed 50/50, disregarding a distribution waterfall in the operating agreement that would have resulted in DSB’s client receiving the majority of the funds, with the amount owed growing at 12% per annum compounded monthly until paid.  The Appellate Division reversed, directed entry of a judgment providing that the formula set forth in the operating agreement must be followed, awarded costs in favor of DSB’s client, and remanded the matter for trial as to whether an additional judgment should be entered for monetary damages arising from breach of contract.  AJG Parkview Corp. v. Calabrese, 187 A.D.3d 1175 (2d Dept. 2020).