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SUTTON 58 ASSOC. LLC v. PILEVSKY

654917/16. Appeal No. 8064. Case No. 2018-21045.

189 A.D.3d 726 (2020)

137 N.Y.S.3d 359

2020 NY Slip Op 08020

Sutton 58 Associates LLC, Respondent, v. Philip Pilevsky et al., Appellants.

Appellate Division of the Supreme Court of New York, First Department.

Decided December 29, 2020.

Attorney(s) appearing for the Case

Friedman Kaplan Seiler & Adelman LLP, New York ( Robert S. Smith of counsel), for appellants.

Kramer Levin Naftalis & Frankel LLP, New York ( Ronald S. Greenberg of counsel), for respondent.

Concur—Friedman, J.P., Gische, Oing, Singh, Moulton, JJ.

This action arises from the default of loans that plaintiff Sutton 58 Associates, LLC made to nonparties BH Sutton Mezz LLC (Mezz Borrower) and Sutton 58 Owner LLC (Mortgage Borrower) (collectively, the Borrowers) in order to finance the development and construction of an apartment complex on a Manhattan property owned by Mortgage Borrower. Mezz Borrower owned 100% of the membership interest in Mortgage Borrower.

In relevant part, it is undisputed that the loan agreements...

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