As it approaches its sixth anniversary with little sign of letting up, the highly contentious litigation between brothers and business partners Nissim and Avraham Kassab is the gift that keeps on giving, at least to us outside observers and business divorce aficionados.
In one after another decision over the years, Justices Orin Kitzes (since retired) and Timothy J. Dufficy of the Queens County Supreme Court have tackled a series of thorny legal issues arising out of the brothers’ dysfunctional relationship as co-owners of a corporation (“Corner”) and an LLC (“Mall”) that own adjoining, vacant parcels in downtown Jamaica, Queens, operated together as a single parking lot and for weekend flea markets. In 2013, Nissim as 25% owner sought judicial dissolution of both on grounds of oppression, breach of fiduciary duty, and looting by Avraham who in turn accused NIssim of diverting parking lot and flea market revenues for his personal benefit.
Nissim ultimately won his bid to dissolve Corner under BCL § 1104-a. Justice Dufficy’s August 2017 post-trial decision appointed a receiver who, after Avraham declined the court’s offer to purchase Nissim’s shares for fair value, last year auctioned off Corner’s vacant parcels to a real estate developer for about $19 million. Continue Reading Third Time’s Not a Charm in LLC Dissolution Case