Subin Secures Appellate Victory: Key Claims Reinstated for Clients in Real Estate Fraud Case
McCarthy Fingar represents clients on cases involving problems in real estate transactions. In Stuart Yellin, et al. v. Revival Property Group, LLC, et al., real estate brokers acted as a dual agent on a real estate transaction, representing both the firm’s clients, as the buyer, and the sellers in the sale of certain real property located in Nassau County. Shortly after the purchase of the property and contrary to the brokers’ representations, the firm’s clients discovered, among other things, that the property was remodeled without proper permits, causing significant structural defects, including potential fraud in the transactions. Acting for its clients, McCarthy Fingar commenced an action in the Supreme Court, Nassau County, against the real estate brokers, claiming fraudulent misrepresentation, negligent misrepresentation, gross negligence and breach of fiduciary duty. Several important claims were dismissed by the lower court, and McCarthy Fingar appealed that decision to the Appellate Division of the Supreme Court, Second Judicial Department (“Second Department”). The Second Department reversed the lower court’s dismissal of several crucial claims, including fraudulent misrepresentation, negligent misrepresentation, gross negligence, and breach of fiduciary duty, against defendants Brode Ellison Group at Douglas Elliman Real Estate and Mark Brode. The Second Department also reversed the lower court’s denial of the plaintiffs’ motion for leave to amend their complaint, further empowering the plaintiffs to strengthen their case. The case will now proceed in the lower court with the reinstated causes of action.
The case was argued by Joshua S. Subin, a partner in the firm’s Commercial Litigation, Municipal Law & Land Use, Appellate Practice and Real Estate Transactions groups. “This is a vital outcome for our clients and a significant affirmation of fundamental procedural protections in New York law,” said Joshua S. Subin, counsel at McCarthy Fingar. “The Appellate Division’s decision rightly reinstates our clients’ claims, allowing them to pursue justice for alleged fraudulent conduct and breaches of professional duty. It also serves as an important reminder that CPLR 3211(a) motions to dismiss must be evaluated strictly against the pleaded facts, and courts must provide explicit notice before converting such motions to summary judgment.”