In a February 22, 2011 decision by Justice Demarest the Court allowed the plaintiffs to file a fourth amended complaint and a supplemental summons. The litigation stemmed from a sale of a commercial building. It was alleged that one of the defendants improperly enriched himself when the building was sold through a “wrap around mortgage.”
After filing three amended complaints the parties agreed to settle the action. The defendants did not live up to their obligations under the settlement agreement and the action was reopened. When the action recommenced plaintiffs sought to dismiss certain claims, significantly amend certain claims and add new claims against new parties, including accountants and attorneys. For example, plaintiffs had previously alleged claims against an accounting firm and now sought to add individual accountants as defendants. The Court analyzed each claim and partially granted plaintiffs’ motion.
Holtkampet et al. v Parlex Assoc. et al, Sup Ct, Kings County, February 22, 2011, Demarest, J, Index No. 14514/06