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Loeb & Loeb is pleased to announce a significant appellate victory on behalf of one of the largest diversified net lease REITs with properties in North America and Europe.
As part of its corporate sale lease-back business, the client entered into a series of loan agreements (as lender) with a cohort of borrowers that provide billboard and other outdoor advertising services. The loans at issue here were secured by properties in New Jersey and Pennsylvania. Litigation began in 2023, after the borrowers/guarantor defaulted on the loan agreements and personal guaranties. Following a motion for summary judgment in lieu of complaint, the Trial Court awarded the client a judgment of over $32 million. The defendant borrowers/guarantor subsequently filed a number of motions aimed at vacating the judgment and rearguing or renewing the summary judgment motion. Loeb successfully opposed the motions, each of which were denied by the Trial Court. The defendants subsequently appealed each of the related orders.
On Appeal, the appellants contended that the Trial Court misapplied New York Real Property Actions and Proceedings Law (RPAPL) in granting summary judgment to the client and declining to vacate the judgment because the client also foreclosed on the properties and received the proceeds from the foreclosure sales. However, as Loeb successfully argued, those provisions of the RPAPL do not apply to properties and foreclosure actions outside of New York State, and the borrowers defaulted under the loan agreements and guaranties. The Appellate Division, First Department, held oral argument on April 15, 2026. On May 12, 2026, the Appellate Division unanimously affirmed the $32 million judgment and each of the related decisions on the same grounds as Loeb argued.
The Loeb team was led by Gil Feder, chair of the Real Estate Litigation practice, and Real Estate Litigation associate Elena De Santis.
As part of its corporate sale lease-back business, the client entered into a series of loan agreements (as lender) with a cohort of borrowers that provide billboard and other outdoor advertising services. The loans at issue here were secured by properties in New Jersey and Pennsylvania. Litigation began in 2023, after the borrowers/guarantor defaulted on the loan agreements and personal guaranties. Following a motion for summary judgment in lieu of complaint, the Trial Court awarded the client a judgment of over $32 million. The defendant borrowers/guarantor subsequently filed a number of motions aimed at vacating the judgment and rearguing or renewing the summary judgment motion. Loeb successfully opposed the motions, each of which were denied by the Trial Court. The defendants subsequently appealed each of the related orders.
On Appeal, the appellants contended that the Trial Court misapplied New York Real Property Actions and Proceedings Law (RPAPL) in granting summary judgment to the client and declining to vacate the judgment because the client also foreclosed on the properties and received the proceeds from the foreclosure sales. However, as Loeb successfully argued, those provisions of the RPAPL do not apply to properties and foreclosure actions outside of New York State, and the borrowers defaulted under the loan agreements and guaranties. The Appellate Division, First Department, held oral argument on April 15, 2026. On May 12, 2026, the Appellate Division unanimously affirmed the $32 million judgment and each of the related decisions on the same grounds as Loeb argued.
The Loeb team was led by Gil Feder, chair of the Real Estate Litigation practice, and Real Estate Litigation associate Elena De Santis.
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Chair, Real Estate Litigation -
Associate