This decision addresses cross-motions for summary judgment in a case stemming from a failed condominium project.
The plaintiffs, investors in a syndicated loan secured by a mortgage, sought judgment against the developer and its principal for their investment losses, relying on a contractual guarantee.
The defendants sought to dismiss the action, arguing the guarantee was not binding and the plaintiffs assumed investment risks.
The court granted the plaintiffs' motion, finding that the loan commitment, which included a guarantee from the developer and its principal, was incorporated into the trust agreement governing the syndicated loan.
The court emphasized the trustee's fiduciary duty to enforce the guarantee and allowed the beneficiaries (plaintiffs) to enforce it directly due to the trustee's failure to act.
The court also made adverse inferences against the defendants due to their litigation conduct, including refusal to answer questions and produce witnesses.