The defendants, Altus Group Limited and Jason White, brought a motion for summary judgment to dismiss the action, arguing the plaintiff, Melvyn D. Eisen (the Trustee), lacked standing to represent 13 investors in a syndicated mortgage transaction.
The Trustee brought a cross-motion seeking a declaration of standing or, alternatively, to add or substitute the Investor Beneficiaries as plaintiffs.
The court dismissed the defendants' summary judgment motion, finding genuine issues for trial regarding the Trustee's standing and the timing of detrimental reliance.
The court also denied the Trustee leave to bring his cross-motion, concluding that adding or substituting parties at this late stage, after the action was set down for trial, was not warranted given the deliberate tactical choice made by the Trustee and the potential for further delays and prejudice to the defendants.