The defendant vendor brought a motion to discharge a certificate of pending litigation (CPL) obtained ex parte by the plaintiff purchaser after a failed $55 million commercial real estate transaction.
The court found that the plaintiff made a false statement in its affidavit regarding a contractual obligation to resell the property, constituting material non-disclosure.
Applying the Dhunna factors, the court also determined that the property was purchased for investment purposes, damages could be readily calculated, and the CPL prejudiced the vendor's ability to refinance or sell.
The CPL was discharged.
The plaintiff's cross-motions for consolidation and document production were dismissed, though the actions were ordered to be heard together.
