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  • One Penn Plaza Llc v. Korpenn LlcSpecial Proceedings - CPLR Article 75 document preview
  • One Penn Plaza Llc v. Korpenn LlcSpecial Proceedings - CPLR Article 75 document preview
  • One Penn Plaza Llc v. Korpenn LlcSpecial Proceedings - CPLR Article 75 document preview
  • One Penn Plaza Llc v. Korpenn LlcSpecial Proceedings - CPLR Article 75 document preview
  • One Penn Plaza Llc v. Korpenn LlcSpecial Proceedings - CPLR Article 75 document preview
  • One Penn Plaza Llc v. Korpenn LlcSpecial Proceedings - CPLR Article 75 document preview
  • One Penn Plaza Llc v. Korpenn LlcSpecial Proceedings - CPLR Article 75 document preview
  • One Penn Plaza Llc v. Korpenn LlcSpecial Proceedings - CPLR Article 75 document preview
						
                                

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FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 CIFILED: NEW YORK COUNTY CLERK 10/27/2023 12:26 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 75 RECEIVED NYSCEF: 10/27/2023 At IAS Part of the Supreme Court of New York, held in and for the County of New Yprk, at the Courthouse located at 11 Thetst'S Street, New York, New York 10013 on the 27thday of October 2023 PRESENT: Hon. JOHN J. KELLEY, Justice ONE PENN PLAZA LLC, Petitioner, Index No. 653628/2023 Motion Sequence No. 002 - against - feltetee&EftORDER TO KORPENN LLC, SHOW CAUSE Respondent. Upon reading the affirmation of Janice Mac Avoy dated October 26, 2023 with accompanying exhibits, the affidavit of Darcy Stacom sworn to on October 25, 2023, with e- accompanying exhibits, the affirmation of emergency of Janice Mac Avoy dated October 26, 2023, and the accompanying memorandum of law, and upon all the prior pleadings and proceedings, and sufficient cause having been alleged therefor, LET Respondent Korpenn LLC, or their counsel, show cause before IAS Part 54 of the Supreme Court of the State of New York, County of New York, RoomYI at the Courthouse located at 71 Thomas Street, New York, New York on the 21st day of November 2023 at ON PAPERS ONLY, WITHOUT ORAL ARGUMENT OR PERSONAL APPEARANCE 10:00 a.m., or as soon thereafter as counsel can be heard, Why an order should not be made and entered: (i) pursuant to CPLR 7503(a) and 7601, compelling Respondent to proceed with the rent 1 of 2 1 of 128 FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 FILED: NEW YORK COUNTY CLERK 10/27/2023 12:26 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 75 RECEIVED NYSCEF: 10/27/2023 reset appraisal proceeding (the "Appraisal Proceeding") pursuant to Article 21 of the parties' lease, (ii) pursuant to CPLR 7502(c), preliminarily enjoining and ordering Respondent Korpenn LLC and its counsel to cease and desist from (a) asserting to the appointed appraisers in the Appraisal Proceeding that continued pendency of the plenary declaratory judgment action brought by Respondent Korpenn LLC, Korpenn LLC v. One Penn Plaza LLC, Index No. 651615/2023 (Sup. Ct. N.Y. Cnty. 2023) (the "Sublease Action"), constitutes a basis for a stay or any delay of the Appraisal Proceeding; or (b) asserting to the appraisers in the Appraisal Proceeding that they should or may purport to decide any of the issues of contract interpretation raised by Korpenn LLC and its counsel in the Sublease Action, and (iii) granting such other further relief as the Court may deem just and proper; and it is further ig)XNXXIQXXO.QoeXXXNXWKr)P6XtI4XXXIXXXXtYoWt(cXpYoVreYa.KXXs*XuvcXXXXYAXX XXXXKUXXXOSVOSKXXXXPOWNQ(AW(gNirk7MX0Q90V)SXMAXiM4V1Q.cW XXXXXXXMI.XXXXMXXXXi4XXXXXIMXXXXXXXXXVIXXXXXXAMOVNXXX KoVratX)XXXXXVOSX.XXXXXXXXXXXXX420%5XXXX?(XXXXPIXWXXXVXXXAMX MKXXXXX)VAYaQUM1XXXXa.̀ 91AWKAIMOWAXAMMXIYAXXXXWQP9Q9( XXXPOPitc20(1XXXLXLX0MIYAANIMXXXXICWWW909( XX ORDERED that a copy of this order, together with the papers upon which it is granted, shall be served upon Respondent's counsel via NYSCEF on or before October 31s2023, and such shall be deemed good and sufficient service thereof; and it is further ORDERED that Respondent's answering papers, if any, shall be served upon Petitioner's November 14, 2023 counsel via NYSCEF on or before XXXI*XXXXXXX; and it is further NPOSE4WPWaPPPWANXIQQ6KXMWAWMP9P9WWV9914XMX tqf,MQOP6KAUXXXP9A.MMQAMK.Xxxxxxxxxx?99( aNTER 2 JOHN J. KELLEY, -5. S 2 of 2 2 of 128 FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 FILED: NEW YORK COUNTY CLERK 10/26/2023 12:37 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 59 RECEIVED NYSCEF: 10/26/2023 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK Index No. 653628/2023 ONE PENN PLAZA LLC, Petitioner, Motion Sequence No. 002 - against - AFFIRMATION OF EMERGENCY KORPENN LLC, Assigned to Respondent. Justice Lucy Billings 1AS Part 41 JANICE MAC AVOY, an attorney admitted to practice in the courts of the State of New York, affirms under penalty of perjury pursuant to CPLR 2106(a) as follows: 1. I am a member of the law firm of Fried, Frank, Harris, Shriver & Jacobson LLP, attorneys for One Penn Plaza LLC ("Tenant") as Petitioner in this special proceeding and as defendant in the related action captioned Korpenn LLC v. One Penn Plaza LLC, Index No. 651615/2023 (Sup. Ct. N.Y. Cnty. 2023) (Billings, J.). 2. I am fully familiar with the facts set forth herein. 3. I respectfully submit this affirmation of emergency, together with the affirmation of Janice Mac Avoy dated October 26, 2023, with accompanying exhibits, the Affidavit of Darcy Stacom sworn to on October 25, 2023, with accompanying exhibits, and the accompanying memorandum of law, in support of Petitioner's instant motion by order to show cause to (i) compel the appraisal proceeding pending between the parties to proceed and (ii) order Respondent Korpenn LLC ("Landlord") and its counsel to cease and desist from continued attempts to delay and distort the appraisal proceeding to determine the fair market value of the subject land ("Tenant's Motion"). 4. As set forth in Tenant's Motion, Landlord and its counsel continue to delay and obstruct the appraisal proceeding by insisting that it cannot move forward until determination 1 of 4 3 of 128 FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 FILED: NEW YORK COUNTY CLERK 10/26/2023 12:37 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 59 RECEIVED NYSCEF: 10/26/2023 of the claims Landlord asserted in the plenary action captioned Korpenn LLC v. One Penn Plaza LW, Index No. 651615/2023 (the "Sublease Action"). Landlord's obstruction is in direct contravention of this Court's Decision and Order dated August 21, 2023 and entered on September 6, 2023 (Sublease Action, NYSCEF Doc. No. 57, the "Injunction Decision"), in which the Court expressly denied Landlord's motion to stay the appraisal proceeding pending determination of its claims in the Sublease Action. 5. Moreover, Landlord and its counsel urge that the appraisal panel be converted to an arbitration seeking to address declaratory judgment issues raised in the Sublease Action, in contravention of the parties' lease, the Court's prior holding, and Landlord's own prior litigation positions. 6. This conduct by Landlord and its counsel has caused, and continues to cause, delay and confusion, threatening to render ineffectual the appraisal panel's determination of fair market value of the subject land, which is the one and only issue to which the parties agreed to submit to the appraisers for determination. 7. On October 25, 2023 10:30 a.m., I gave Landlord's counsel notice that Tenant intends to file Tenant's Motion seeking, among other things, a temporary restraining order enjoining Landlord, its counsel, and those acting in concert with them from asserting to the appraisal panel (a) that pendency of the Sublease Action constitutes any basis for a stay or delay of the appraisal proceeding, or (b) that the appraisers may raise or purport to decide any issues of contract interpretation relating to the claims asserted in the Sublease Action. 8. On account of the foregoing and of Landlord's complete disregard of its contractual obligations with respect to the Property and of this Court's prior directives, this 2 2 of 4 4 of 128 FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 FILED: NEW YORK COUNTY CLERK 10/26/2023 12:37 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 59 RECEIVED NYSCEF: 10/26/2023 application is a matter of great urgency. Unless the Court can immediately act to compel the proceeding and enjoin Landlord, Petitioner will suffer irreparable injury. Dated: New York, New York October 26, 2023 /s/ Janice Mac Avoy JANICE MAC AVOY 3 3 of 4 5 of 128 FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 FILED: NEW YORK COUNTY CLERK 10/26/2023 12:37 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 59 RECEIVED NYSCEF: 10/26/2023 CERTIFICATION I hereby certify that this affirmation is in compliance with Uniform Civil Rules Section 202.8-b. The word count of the foregoing affirmation (excluding the caption, the signature block, and this certification) as calculated by the word-processing system used to prepare the document is 535. Dated: New York, New York October 26, 2023 /s/ Janice Mac Avoy Janice Mac Avoy 4 61370821 4 of 4 6 of 128 FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 FILED: NEW YORK COUNTY CLERK 10/26/2023 12:37 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 60 RECEIVED NYSCEF: 10/26/2023 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK Index No. 653628/2023 ONE PENN PLAZA LLC, Petitioner, Motion Sequence No. 002 - against - Assigned to Justice Lucy Billings KORPENN LLC, IAS Part 41 Respondent. AFFIRMATION OF JANICE MAC AVOY JANICE MAC AVOY, an attorney admitted to practice in the courts of the State of New York, affirms under penalty of perjury pursuant to CPLR 2106(a) as fol lows: 1. I am a member of the law firm of Fried, Frank, Harris, Shriver & Jacobson LLP, attorneys for Petitioner One Penn Plaza LLC. I am fully familiar with the facts set forth herein. I respectfully submit this affirmation in support of Petitioner's Motion By Order to Show Cause to (i) Compel Appraisal Proceeding and (ii) Order Respondent and Its Counsel to Cease and Desist from Continued Attempts to Delay and Distort the Appraisal Proceeding. The Rent Reset 2. Tenant and Plaintiff Korpenn LLC ("Landlord") are the lessee and lessor, respectively, under the Agreement Restating Indenture of Lease, dated as of July 10, 1970 (the "Lease"). Doc. 3.1 3. Pursuant to Article 21 of the Lease, the parties commenced an appraisal proceeding in January-February 2023 by each appointing appraisers to determine the rent for a 25- year term starting on June 17, 2023. Doc. 3, art. 21. References to "Doc. " are to the NYSCEF Document Numbers in the above-captioned action. 1 of 9 7 of 128 FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 FILED: NEW YORK COUNTY CLERK 10/26/2023 12:37 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 60 RECEIVED NYSCEF: 10/26/2023 Landlord Attempts to Delay the Appraisal Proceeding 4. On March 30, 2023, Landlord commenced an action captioned Karpenn LLC v. One Penn Plaza LLC, Index No. 651615/2023 (Sup. Ct. N.Y. Cnty. Mar. 30, 2023) (Billings, J.) (the "Sublease Action"), NYSCEF Doc. No. 1, challenging the existence of a sublease encumbering the Land. The Sublease Action was marked as a related case to this special proceeding. Doc. 21. 5. Landlord also moved by order to show cause for a stay of the appraisal proceedings "pending the determination of Plaintiff's declaratory judgment claims in this action...." Doc. 17 ("Motion to Stay"), at 1. 6. Landlord argued that the "parties cannot move forward with the rent reset appraisal proceeding under the Ground Lease ... until this Court has heard and determined Plaintiff's claims for declaratory relief[.]" Exhibit A at 4 (alteration and ellipsis added). A true and correct copy of Landlord's Memorandum of Law in support of Motion to Stay Appraisal Proceeding and for Expedited Discovery, filed in the Sublease Action as NYSCEF Doc. No. 15, is attached hereto as Exhibit A. 7. Landlord also argued against the idea of treating the appraisal proceeding as an arbitration: This action involves an appraisal proceeding, not an arbitration. New York law has long distinguished between appraisal proceedings and arbitrations. Although the two types of proceedings have commonalities, one of the defining differences is that an appraiser's authority is limited solely to the determination of value, whereas an arbitrator's authority generally embraces any dispute within the scope of the arbitration provision * * * Because the Appraisers are not arbitrators, they lack the authority to resolve the parties' dispute here as to whether the [disputed contract] 2 2 of 9 8 of 128 FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 FILED: NEW YORK COUNTY CLERK 10/26/2023 12:37 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 60 RECEIVED NYSCEF: 10/26/2023 was valid, and if so whether it had the effect of reviving the "Lessor's Sublease" such that it is "in existence" and must be considered by the Appraisers in determining the FMV of the Demised Property. * * * Even if this were an arbitration, the claims in [Landlord's] Complaint would be susceptible to judicial resolution because the issues raised are external to the subject matter of the proceeding, which is limited to determining the FMV of the Demised Property. Exhibit A at 8-10 & n.2 (alterations and ellipses added). 8. Landlord also argued that, "given that the appraisers are empowered to decide only FMV, this Court is the only forum in which Plaintiff's claims for declaratory relief relating to the validity of the [sublease] can be adjudicated.... They must therefore be resolved by this Court." Exhibit B at 3-4 (alteration and ellipsis added). A true and correct copy of Landlord's Reply Memorandum of Law in support of Motion to Stay Appraisal Proceeding and for Expedited Discovery, filed in the Sublease Action as NYSCEF Doc. No. 36, is attached hereto as Exhibit B. 9. On April 7, 2023, this Court temporarily stayed the appraisal proceeding and scheduled a hearing on Landlord's Motion to Stay for May 18, 2023 (the "May 18 Hearing"). Doc. 20. 10. After the Court temporarily stayed the appraisal proceeding, Landlord took the position that the temporary stay prohibited the appraisal proceeding from moving forward any further, even prohibiting the parties from taking any steps towards appointing a third appraiser. 11. At the May 18 Hearing, Landlord began its argument by stating, "I think ... this is a question that belongs before the Court." Doc. 19 at 3:14-15. The Court agreed, "I think that question does, but I don't think I could point to determine that question in your favor." Id. at 3:16-17. 3 3 of 9 9 of 128 FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 FILED: NEW YORK COUNTY CLERK 10/26/2023 12:37 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 60 RECEIVED NYSCEF: 10/26/2023 12. Landlord's counsel also told the Court, "[w]e're asking you to stay the proceeding. This is a motion to stay. All the Court need find is that we are likely to succeed on the merits of our claim." Doc. 19 at 22:6-9. 13. This Court stated at the hearing "that there is no stay of the appraisal proceeding in effect right now. So I don't know why it's not proceeding." Doc. 19 at 16:23-25. After Petitioner clarified that there was a temporary stay in the order to show cause, id. at 17:1-2, the Court "immediately ... vacate[d] the temporary restraining order," id. at 29:1-2. 14. The Court ultimately rejected Landlord's claims, stating that Landlord has not given the Court "any basis on which to invalidate" the challenged sublease and that "there was [not] anything unlawful about" it. Doc. 19 at 2:24-3:10. The Court added, "[t]here is nothing ambiguous about the assignment," id. at 22:25-23:1, and "[t]he terms of the assignment arc clear.... Bottom line, it's enforceable," id. at 23:17-19. The Court then said it "anticipate[d] denying this motion, but it will be a written decision." Id. at 29:4-5. 15. On a June 21, 2023 phone conference with the Court, Landlord's counsel tried to convince the Court that the appraisal proceeding could not move forward until the Sublease Action was resolved. The Court told Landlord's counsel directly that it already ruled on Landlord's Motion to Stay and would not relitigate the issue over the phone. 16. In the Court's written decision, dated August 21, 2023 and entered on September 6, 2023 (Doc. 57, the "Injunction Decision"), the Court "denied plaintiffs motion for a preliminary injunction because plaintiff fail[ed] to show a likelihood of success on plaintiffs claim" concerning the validity of the sublease, id. at 2. The Court was also clear that it "will not determine the impact of the assignment or the sublease on the appraisal of plaintiff's building," leaving that issue for the panel of appraisers. Id. at 3. 4 4 of 9 10 of 128 FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 FILED: NEW YORK COUNTY CLERK 10/26/2023 12:37 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 60 RECEIVED NYSCEF: 10/26/2023 17. Tenant moved to dismiss the complaint in the Sublease Action (Motion Sequence No. 002), which motion is fully briefed for the Court and awaiting a ruling. Sublease Action, NYSCEF Docs. 44-66. 18. On October 6, 2023, Landlord filed a notice of appeal from the August 21 Decision. Sublease Action, NYSCEF Doc. No. 69; Korpenn LLC v. One Penn Plaza LLC, 2023- 04982 (1st Dep't 2023). The Parties Appoint a Full Appraisal Panel 19. Section 21.04 of the Lease provides, as a final resort, that the third appraiser is to be appointed by a Justice of the Supreme Court: If any person designated by such President is not acceptable to either of the parties to the dispute, such person shall be replaced by a person appointed by the Justice of the Supreme Court, New York County, then presiding in Special Term, Part II thereof, or the equivalent of said Part II. Doc. 3 §21.04, at 97. 20. Thus, on July 26, 2023, Tenant commenced the above-captioned special proceeding by filing an Article 75 petition asking this court to appoint a third appraiser pursuant to Section 21.04 of the Lease (the "Petition," Doc. 1). 21. On September 1, 2023, Landlord "oppose[d] the Petition to the extent that it seeks the appointment of a Third Appraiser before entry of final judgment" in the Sublease Action. Doc. 27 at 1 (alteration added). 22. Landlord also asserted a purported affirmative defense that the "Petition is premature to the extent that it seeks the appointment of a third appraiser before the full and final resolution of the claims asserted" in the Sublease Action. Doc. 26 (Fifth Affirmative Defense), at 11. 5 5 of 9 11 of 128 FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 FILED: NEW YORK COUNTY CLERK 10/26/2023 12:37 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 60 RECEIVED NYSCEF: 10/26/2023 23. After fully briefing the Petition, Tenant and Landlord were able to agree to retain Jonathan M. Estreich of Estreich & Company as the third appraiser, thereby forming a full panel of appraisers pursuant to Section 21.04 of the Lease. A true and correct copy of the executed engagement letter dated October 4, 2023 is attached hereto as Exhibit C. Landlord Obstructs the Appraisal Proceeding 24. On October 11, 2023, Mr. Estreich asked Landlord's counsel and I "when would be a good time to discuss timing and requests for information" concerning the appraisal proceeding. I expressed my availability to discuss the next steps for the appraisal proceeding, but Landlord's counsel asserted that he needed to speak to me about "a couple of outstanding matters between the parties that will impact timing and deliverables" before we could speak to Mr. Estreich. A true and correct copy of this email correspondence is attached hereto as Exhibit D. 25. Furthermore, Landlord's counsel told me that they were "eager for the [appraisal] panel to get started, but there is limited work they can do until the sublease issue [in the Sublease Action] is resolved." Ex. E at 2 (alteration added). I replied, "[w]e vehemently disagree. We can talk but the judge denied your request to stay the [appraisal proceeding]." Ex. E at 1. Landlord's counsel insisted, "[w]e want this to move forward probably even more than you do. But the sublease issue must be resolved first. We've been crystal clear on that." A true and correct copy of this email correspondence is attached hereto as Exhibit E. 26. On October 20, 2023, Landlord's counsel emailed me a copy of a letter addressed to Justice Lucy Billings with reference to the above-captioned action and the Sublease Action (the "October 20 Letter"). A true and correct copy of the October 20 Letter, filed in the Sublease Action as NYSCEF Doc. No. 70, is attached hereto as Exhibit F. 6 6 of 9 12 of 128 FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 FILED: NEW YORK COUNTY CLERK 10/26/2023 12:37 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 60 RECEIVED NYSCEF: 10/26/2023 27. In the October 20 Letter, Landlord's counsel states that "intends to move for a stay of the parties' appraisal proceeding or, in the alternative, to specifically enforce the appraisal provision of the parties' ground lease ... as if it were an arbitration agreement, so as to permit the panel of appraisers to decide the issues in the [Sublease] Action." Ex. F at 1 (alteration and ellipsis added). 28. On October 25, 2023, at 10:30 a.m., I gave Landlord's counsel notice that Tenant intended to file the instant motion to compel the appraisal proceeding and restrain Landlord from delaying or distorting the appraisal proceeding. A true and correct copy of this email correspondence is attached hereto as Exhibit G. 29. Landlord's counsel replied as follows: We will address your motion in court at the appropriate time. However, I will correct the record on your misstatement that Korpenn has taken "diametrically opposed" positions. Korpenn has been perfectly clear (as is New York law) that appraisers are not authorized to decide legal issues like the dispute over the Lessor's Sublease. That has been Korpenn's position from the beginning and it remains Korpenn's position. (By contrast, Vomado has changed its position, which was originally that the dispute over the Lessor's Sublease "has no place in court" and should be decided by a then-undetermined panel. Vornado's current position is the opposite.) Korpenn commenced its action in court in March 2023, when there was no Panel, to preserve its right to be heard on this issue. Now that we have a third appraiser whom both parties have agreed upon, we proposed authorizing the Panel to decide this issue rather than waiting for final resolution in the courts, which will likely take until at least mid-2024. Ex. G at 1 (emphasis added). 30. There has been no prior request for the relief sought herein in this or any other court. 7 7 of 9 13 of 128 FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 'FILED: NEW YORK COUNTY CLERK 10/26/2023 12:37 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 60 RECEIVED NYSCEF: 10/26/2023 Dated: New York, New York October 26, 2023 /s/ Janice Mac Avoy JANICE MAC AVOY 8 8 of 9 14 of 128 FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 FILED: NEW YORK COUNTY CLERK 10/26/2023 12:37 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 60 RECEIVED NYSCEF: 10/26/2023 CERTIFICATION I hereby certify that this affirmation is in compliance with Uniform Civil Rules Section 202.8-b. The word count of the foregoing affirmation (excluding the caption, the signature block, and this certification) as calculated by the word-processing system used to prepare the document is 2,014. Dated: New York, New York October 26, 2023 /s/ Janice Mac Avoy Janice Mac Avoy 9 9 of 9 15 of 128 FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 FILED: NEW YORK COUNTY CLERK 10/26/2023 12:37 Raj INDEX NO. 653628/2023 NYSCEF DOC. NO. 61 RECEIVED NYSCEF: 10/26/2023 Exhibit A 16 of 128 FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 FILED: NEW YORK COUNTY CLERK 10/26/2023 12:37 Raj INDEX NO. 653628/2023 NYSCEF DOC. NO. 61 RECEIVED NYSCEF: 10/26/2023 FILED: NEW YORK COUNTY CLERK 03/30/2023 07:42 PM) INDEX NO. 651615/2023 NYSCE'z' GEC. NO. 15 RECEIVED NYSCEF: 03/31/2023 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK KORPENN LLC, Index No. Plaintiff, -against- ONE PENN PLAZA LLC, Defendant. PLAINTIFF'S MEMORANDUM OF LAW IN SUPPORT OF MOTION TO STAY APPRAISAL PROCEEDING AND FOR EXPEDITED DISCOVERY MORRISON COHEN LLP Brett Dockwell David A. Piedra Mahnoor Misbah 909 Third Avenue New York, New York 10022 (212) 735-8600 Attorneysfor Plaintiff Korpenn LLC 1 of 22 17 of 128 FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 FILED: NEW YORK COUNTY CLERK 10/26/2023 12:37 Raj INDEX NO. 653628/2023 NYSCEF DOC. NO. 61 RECEIVED NYSCEF: 10/26/2023 FILED: NEW YORK COUNTY CLERK 03/30/2023 07:42 PM) INDEX NO. 651615/2023 NYSCE'z' DOC. NO. 15 RECEIVED NYSCEF: 03/31/2023 TABLE OF CONTENTS Page TABLE OF AUTHORITIES ii PRELIMINARY STATEMENT STATEMENT OF FACTS 4 A. The Parties 4 B. The Ground Lease 5 C. The Lessor's Sublease 6 D. The Rent Reset Process 7 ARGUMENT 8 I. THIS COURT HAS JURISDICTION TO DETERMINE PLAINTIFF'S CLAIM FOR DECLARATORY RELIEF RELATING TO DEFENDANT'S NEWLY-CREATED SUBLEASE 8 II. A STAY OF THE APPRAISAL PROCEEDING IS WARRANTED UNDER CPLR 22O1 14 III. EXPEDITED DISCOVERY IS WARRANTED 15 CONCLUSION 17 WORD COUNT CERTIFICATION 18 2 of 22 18 of 128 FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 INDEX NO. 653628/2023 FILED: NEW YORK COUNTY CLERK 10/26/2023 12:37 Raj NYSCEF DOC. NO. 61 RECEIVED NYSCEF: 10/26/2023 FILED: NEW YORK COUNTY CLERK 03/30/2023 07:42 PM) INDEX NO. 651615/2023 NYSCE'z' UCC. NO. 15 RECEIVED NYSCEF: 03/31/2023 TABLE OF AUTHORITIES Page(s) CASES 853 Seventh Ave. Owners, LLC v. W& HM Realty Co., 7O A.D.3d 515 (1st Dcp't 2010) 9 936 Second Ave. L.P. v. Second Corporate Dev. Co., Inc., to N.Y.3d 628 (2OO8) 9 Archdiocese of N.Y. v. Amedeo Hotels P'Ship, 742 N.Y.S.2d 635 (1st Dep't 2002) 9 Brosnan v. Behette, 243 A.D.2d 524 (2d Dcp't 1997) 14 In re Delmar Box Co., 309 N.Y. 6o (1955) 8,1O Empire Med. Sys., LLC v. Bernardoni, 141 A.D.3d 1O77 (4th Dep't 2O16) 9 First Nat'l Stores, Inc. v. Yellowstone Shopping Ctr., Inc., 21 N.Y.2d 63o (1968) 11 Geddes v. Zeiderman, 644 N.Y.S.2d 729 (1st Dep't 1996) 15 Goldstein v. 12 Broadway Realty LLC, 89 A.D.3d 59O (1st Dep't 2011) 8 Herald Co. v. Frey, 35 A.D.2d 9O5 (4th Dep't 197O) 14 New York Overnight Partners, L.P. v. Gordon, 88 N.Y.2d 716 (1996) 8, 9, 13 Penn Cent. Corp. v. Consolidated Rail Corp., 56 N.Y.2d 120 (1982) 8, 10, 11 Plaza Hotel Assocs. v. Wellington Assocs., Inc., 55 Misc. 2d 483 (Sup. Ct. N.Y. Cnty. 1967), aff'd, 28 A.D.2d 12O9 (1st Dep't 1967), aff'd, 22 N.Y.2d 846 (1968) 15 ii 3 of 22 19 of 128 FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 FILED: NEW YORK COUNTY CLERK 10/26/2023 12:37 Raj INDEX NO. 653628/2023 NYSCEF DOC. NO. 61 RECEIVED NYSCEF: 10/26/2023 FILED: NEW YORK COUNTY CLERK 03/30/2023 07:42 PM) INDEX NO. 651615/2023 NYSCE'z' GEC. NO. 15 RECEIVED NYSCEF: 03/31/2023 Ruth v. S. Z. B. Corp., 2 Misc. 2d 631 (Sup. Ct. N.Y. Cnty. 1956), affd, 2 A.D.2d 970 (1st Dep't 1956) 9 Sheridan Assocs., Inc. v. Potasnik, 155 N.Y.S.2d 81 (Sup. Ct. N.Y. Cnty. 1956) 11 Sylmark Holdings Ltd. v. Silicone Zone Int'l Ltd., 783 N.Y.S.2d 758 (Sup. Ct. N.Y. Cnty. 2004) 15 STATUTES & RULES CPLR 2201 14,15 CPLR 3001 10 OTHER AUTHORITIES 5 Weinstein-Korn-Miller, N.Y. Civ. Prac. (Matthew Bender 2002) 10, 11 iii 4 of 22 20 of 128 FILED: NEW YORK COUNTY CLERK 10/27/2023 05:43 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 79 RECEIVED NYSCEF: 10/27/2023 FILED: NEW YORK COUNTY CLERK 10/26/2023 12:37 PM INDEX NO. 653628/2023 NYSCEF DOC. NO. 61 RECEIVED NYSCEF: 10/26/2023 (FILED: NEW YORK COUNTY CLERK 03/30/2023 07:42 PM, INDEX NO. 651615/2023 NYSCEF DOC. NO. 15 RECEIVED NYSCEF: 03/31/2023 Plaintiff Korpenn LLC ("Plaintiff') respectfully submits this memorandum in support of its motion for (i) a stay of the pending apprai