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111 WEST 57th INVESTMENT LLC v. 111 W57 MEZZ INVESTMENT LLC

Index No. 655031/17. Appeal No. 718. Case No. 2023-00158.

220 A.D.3d 435 (2023)

198 N.Y.S.3d 521

2023 NY Slip Op 05029

111 West 57th Investment LLC et al., Respondents-Appellants, v. 111 W57 Mezz Investment LLC et al., Respondents, and ACREFI Mortgage Lending, LLC, et al., Appellants-Respondents, et al., Defendants.

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

Decided October 5, 2023.

Attorney(s) appearing for the Case

Dechert LLP, New York ( Gary J. Mennitt of counsel), for appellants-respondents.

Ice Miller LLP, New York ( Justin E. Klein of counsel), Cooper & Kirk, PLLC, Washington, DC ( Haley N. Proctor of the bar of the District of Columbia, admitted pro hac vice, of counsel), and Benesch Friedlander Coplan & Aronoff LLP, New York ( Thomas A Bousnakis of counsel), for respondents-appellants.

Greenberg Traurig, LLP, New York ( Daniel R. Milstein of counsel), for 111 W57th Mezz Investment LLC, Spruce Capital Partners LLC, Joshua Crane, and Robert Schwartz, respondents.

Tarter Krinsky & Drogin LLP, New York ( Brittany K. Lazzaro of counsel), for Atlantic 57 LLC, 57 Madison LLC, and Arthur Becker, respondents.

Concur— Manzanet-Daniels, J.P., Singh, Gesmer, Rodriguez, Rosado, JJ.

Order, Supreme Court, New York County (Joel M. Cohen, J.), entered December 16, 2022, which granted in part and denied in part defendants' various motions to dismiss, unanimously modified, on the law, to dismiss the derivative claim against the Apollo Lenders1 for breach of the duty of good faith and fair dealing (Count II), and otherwise affirmed, without costs.

The covenant of good faith and fair dealing "embraces a pledge that neither...

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