Two years ago, we wrote about a bitter rivalry between two brothers, James and Vincent Cortazar, over their ownership and management of a single-asset real estate enterprise, 47th Road LLC, which owned an apartment building in Queens. In our last article, Queens County Justice Timothy J. Dufficy issued an order dissolving the LLC under Section 702 of the Limited Liability Company Law. The Court concluded that the brothers were so badly divided, and the LLC so mismanaged by James (the apartment building was in foreclosure), that the company was unable to function as intended, leaving dissolution the only option. The Court appointed a receiver to wind down the LLC’s affairs. Pursuant to a later order, the receiver sold the building for a purchase price of $2.5 million, subject to certain credits for outstanding code violations at the building, which became important in the trial to come.
Last month, after a seven-day bench trial, Justice Dufficy issued a lengthy Bench Trial Order and Judgment, a whopper of a follow up to his earlier dissolution ruling. In the dissolution decision that preceded it, the Court ruled that the evidence cast James, the brother in exclusive control of the business, in a decidedly unfavorable light. Did he fare any better after a full-blown trial on the merits? Let’s take a look. Continue Reading The Brothers Cortazar Wage War Once Again