The applicant developer sought leave to issue a certificate of pending litigation (CPL) against a condominium unit it had sold to the respondent, alleging the agreement of purchase and sale was induced by fraudulent representations concerning a larger contemplated purchase of additional units.
The applicant sought rescission and claimed the respondent held the unit in constructive trust.
The court held that the applicant had established a triable issue and a claim to an interest in land for CPL purposes.
However, applying equitable discretion and the Dhunna factors, the court concluded that the property was not unique to the applicant, damages were readily calculable, and the respondent would suffer greater harm due to a pending sale to a third party.
The motion for leave to issue a CPL was therefore dismissed.