L. Wallach

The plaintiff brought a motion for a certificate of pending litigation (CPL) regarding two properties, alleging they were part of a real estate partnership with his father.

The court found there was a triable issue regarding an interest in land but declined to grant the CPL based on equitable factors.

The court concluded that damages would be a satisfactory remedy and that a CPL should not be used to secure a claim for damages.

The motion was dismissed and the interim CPL was discharged.

The applicants and respondents entered into joint venture agreements to invest in commercial real estate projects through jointly owned companies.

The applicants discovered that the respondents were commingling funds, failing to make their required equity contributions, and diverting the applicants' funds to their own personal benefit and to companies they solely owned.

The court found that the respondents breached their contractual and fiduciary duties and were unjustly enriched.

The court imposed constructive trusts over several properties owned by the respondents, appointed a receiver over the respondents' assets, and cancelled the respondents' shares in the jointly owned companies where they had not contributed equity.