New York's highest court has revived a lawsuit seeking nearly $100 million in damages against real estate investor Philip Pilevsky for allegedly obstructing loan agreements for a proposed residential tower in Manhattan, ruling that state law claims for tortious interference were not preempted by federal bankruptcy law.
In a 23-page majority opinion, a divided New York Court of Appeals sided with concerns that a lower court's ruling dismissing the case on preemption grounds could have dramatic and lasting effects on New York City's real estate development community, which commonly relies on the so-called bankruptcy remote special purpose entity loan structures to manage risk.
The device also minimizes the prospect of bankruptcy.
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Tom McParland
Tom McParland of New York Law Journal can be contacted at [email protected]. Follow him on Twitter @TMcParlandALM.
