Preview
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.Ì€ 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