CTSW’s litigation team successfully defended its client, a major real estate developer, in a breach of contract action brought by an alleged third-party beneficiary seeking a multi-million dollar recovery. The plaintiff alleged that CTSW’s client was contractually obligated to purchase certain air rights from it and that it was an intended and designated third party beneficiary to a contract our client had with three other defendants. Those other defendants themselves asserted cross-claims against our client seeking damages arising out of alleged breaches of the contract and fraud. CTSW moved to dismiss the initial case as well as the cross-claims.
On March 12, 2013, Justice Jeffrey K. Oing of the Commercial Division, New York Supreme Court, dismissed all claims and cross-claims alleged against CTSW’s clients, adopting almost verbatim all of CTSW’s arguments. The court ruled that the plaintiff was not an intended beneficiary of the agreement and that an exculpatory clause contained in the relevant agreement precluded all breach of contract claims alleged by the co-defendants. The judge summarily dismissed all fraud claims.