Partners Get Deceased Partner’s Son to Accept Buyout on Real Estate in Brooklyn
January 2015
(Supreme Court, Kings County)
A husband and a wife (“Plaintiffs”) and a third partner (“the Partner”) entered into a partnership agreement for the purpose of holding real estate on Franklin Street in Brooklyn. The Agreement contained a “buyout clause” in the event of death of one of the partners. After the passing of the Partner, his son (“Defendant”) was appointed as administrator of his father’s estate. Plaintiffs made numerous attempts to buy out the Partner’s interest in the partnership, but Defendant disputed the proper terms for such a transaction.
Plaintiffs commenced an action on October 19, 2012, seeking injunctive relief and declarations that (1) the Property should be transferred to Plaintiffs based on its fair market value at the time of the Partner’s death; (2) the partnership was dissolved by the Partner’s death. Defendant asserted counterclaims for (1) an accounting of the Property’s income and expenses; (2) partition and auction of the Property; (3) and alternatively, for a declaration that the parties co-own the Property.
Itkowitz PLLC was substituted in as Plaintiffs’ counsel on October 3, 2013. On December 19, 2013, Plaintiffs, represented by Itkowitz PLLC, successfully moved for Summary Judgment as to their claims. The Court granted Plaintiff’s summary judgment motion on July 3, 2014 and upheld the validity of the buyout clause and further held that Defendant was not a co-owner of the Property. Accordingly, Defendant was ordered to sell his father’s interest in the partnership based on its fair market value at the time of his father’s death.
On October 30, 2014, the Parties executed a settlement agreement and Defendant agreed to accept a buyout price of his father’s interest in the Partnership.
