Preview
FILED: SULLIVAN COUNTY CLERK 12/20/2023 03:25 PM INDEX NO. E2023-2000
NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 12/20/2023
SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF SULLIVAN Index No. Purchased:
-----------------------------------------X 12/22/2023
EAGLE 52, LLC and Alice Chiappetta and
Jerry Chiappetta Plaintiff designates Sullivan
County as place of
Plaintiffs, Trial. The basis of venue
-against- is location of the real
property.
Index # E2023-2000
BOARD OF MANAGERS OF GRANDVIEw SUMMONS
PALACE OF NEW YORK CONDOMINIUMS Plaintiff resides at:
as Defendant and the Representative of the Class of 200 Broadway
all the Unit Owners of Grandview Palace of New
york Brooklyn, NY 11211
Condominiums,
Defendants.
_______________-----------------------X
To the above named Defendants:
YOU ARE HEREBY SUMMONED to answer the Complaint in this action and to
serve a copy ofyour Answer, or, ifthe Complaint is not served with this Summons, to serve a Notice
of Appearance, on the Plaintiffs Attorney(s) within 20 days after the service of this Summons,
exclusive of the day of service (or within 30 days after the service is complete if this Summons is
not personally delivered to you within the State ofNew York); and in case of your failure to appear
or answer, judgment will be taken against you by default for the relief demanded in the Complaint.
Dated: Monticello, New York
December 18, 2023
MARVIN NEWBERG, ESQ.
Attorney for the Plaintiffs
33 North Street
Monticello, New York 12701
(845) 794-8415
Defendants'
Address: Property Address:
1500 State Route 52 1500 State Route 52
Loch Sheldrake, NY 12759 Loch Sheldrake, NY 12759
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SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF SULLIVAN
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Index # E2023-2000
EAGLE 52, LLC and Alice Chiappetta and
Jerry Chiappetta,
Plaintiffs, VERIFIED
-against- COMPLAINT
BOARD OF MANAGERS OF GRANDVIEW
PALACE OF NEW YORK CONDOMINIUMS,
as Defendant and the Representative of the Class of
all the Unit Owners of Grandview Palace of New
York Condominiums,
Defendants.
______-------------.__.___________--X
Plaintiffs, by their attorney Marvin Newberg, Esq., for their Verified Complaint against
Defendants, allege upon information and belief as follows:
1. That Plaintiffs Alice Chiappetta and Jerry Chiappetta are unit owners of a condominium
unit H-235, located at Grandview Palace.of New York, 1500 State Route 52,.Loch Sheldrake,
NY, Town of Fallsburg Tax Map Nos: 11.-1-39.07/0215.
2. That Plaintiff Eagle 52, LLC is a domestic Limited Liability Company and is the
purchaser under a pending contract of sale to purchase of all the property known as Grandview
Palace of New York Condominiums. Town of Fallsburg Tax Map Nos: I1.-1-39 through and
including 11.-1-39.11/0101.
3. That the Defendant Board of Managers of Grandview Palace of New York
Condominiums is the Board of Managers for the Grandview Palace of New York Condominiums
located at 1500 State Route 52, Loch Sheldrake, NY and represents the interests of all of the
individual condominium unit owners at Grandview Palace.
4. That Defendant Board of Managers also is the owner of several individual condominium
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units at Grandview Palace.
HISTORY
5. Grandview Palace is a condominium development located at 1500 State Route 52, Loch
Sheldrake, NY I2759. The premises constituting Grandview Palace were for many years a
resort hotel known as the Brown's Hotel.
6. The former Brown's Hotel property was purchased by a developer who developed the
Grandview Palace Condominium project which consisted of several large common area
buildings and amenities and numerous of the former hotel rooms were converted and upgraded
into separate condominium units.
7. Annexed hereto as Exhibit A and made part of this Complaint is a listing of the
approximate 396 separate tax map numbers representing the separate 396 condominium units
which make up the property known as Grandview Palace of New York. On the first page of
Exhibit A it can be seen that Defendant Grandview Palace of New York Board of Managers is
the owner of 21 separate units, some being residential and some being the prior common areas
and commercial areas in the development.
8. Unfortunately and tragically on April 14, 2012 there was a massive fire at the Grandview
Palace property which resulted in the total destruction of the majority of the buildings and the
individual residences. Certain of the buildings which were not totally destroyed were rendered
uninhabitable and unusable as a result of the fire damage.
9. Although there was approximately thirty million dollars in p operty insurance coverage
on the Grandview premises, there were lawsuits which ensued between the Defendant and the
applicable insurance carriers to obtain insurance coverage for the loss of the property on behalf of
the unit owners.
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10. Unfortunately, after much litigation it was judicially determined that the insurance
companies were not liable to pay any monies to the unit owners on account of the destruction of
the property and consequently there was no remuneration for any of the unit owners for the
damages due to the fire. The final lawsuit regarding the claims for fire loss was decided in the
Appellate Division, First Department in 2018. A copy of that Judgment is annexed hereto as
Exhibit B.
11. For the past several years, the individual Defendants have been receiving tax bills
from the Town of Fallsburg since their units, although many do not exist physically, are still
listed as tax map parcels by the Town and the County, although no taxes are charged to any of
Defendants'
the Defendants who are in the class on account the physical condition re these
premises.
12. As a result of the foregoing, there is no tax revenue generated by any tax map parcels
owned by the members of the defendant class.
13. By letter dated April 17, 2012, directly after the subject fire, the Town of Fallsburg Code
Enforcement Office commenced a proceeding to condemn certain of the remaining buildings at
Grandview Palace pursuant to the Unsafe Structures provision of the NYS Uniform Building
Code. A copy of that 4/17/12 Notice and Order of the Town of Fallsburg is annexed hereto as
Exhibit C and made part of this Complaint. To this date, the property remains in a deplorable
condition with the remaining buildings being condemned, and substantial areas of the property
being basically rubble.
14. Throughout the years there have been several offers by interested parties to purchase the
Grandview property, however none of the parties who either initially made offers or expressed
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interest in trying to purchase the property and/or remediate and develop same, other than
Plaintiff Eagle 52, LLC, have progressed even to a contract of sale.
15. Upon information and belief, all of the other eight interested parties did not pursue even
entering into a contract of sale due to the enormity of the issues involved with remediating
property, the costs for cleaning up any potential environmental contamination, if any, and
commencing the necessary proceedings to obtain good title for any possible purchase.
16. In or about the summer of 2021, the Town of Fallsburg commenced a proceeding to
acquire title to the Grandview Palace Condominium properties through the eminent domain
process. A copy of the mailings to all of the affected unit owners and the Town's Notice pursuant
to Article 2 of the Eminent Domain Law and the listing of all of the tax map numbers and owners
of said parcels is annexed hereto as Exhibit D and made a part of this Complaint.
17. For whatever reasons, the Town of Fallsburg abandoned the Eminent Domain Law
proceeding that it commenced pursuant to Exhibit D and never followed through on same, again,
leaving the individual unit owners with nothing.
THE PRESENT CONTRACT
18. On or about March, 2023, the Defendant Board of Managers entered into a
Commercial Premises Contract of Sale with Eagle 52, LLC, a Limited Liability Company of
which Eli Silber is the sole member. Said Contract is subject to judicial approval of this sale.
A copy of that Contract of Sale is annexed hereto as Exhibit E and made a part of this Complaint.
19. The purpose of this class action Complaint and proceeding is to obtain a Court Order
authorizing the sale of the Grandview Palace property to Eagle 52, LLC and to provide the
purchaser with insurable title. To date, Eagle 52, LLC has invested substantial sums of money for
a Phase I Environmental Report and a follow up Phase II, and further investigation procedures as
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to the efficacy of remediation of the buildings which are condemned and remediation of the
entire property.
20. The By-Laws of the Grandview Palace Condominiums provide in Article VI - Operation
of the Property, Section 3, that "if 75% or more of the units are destroyed or substantially
damaged and 75% or more of the unit owners do not duly and promptly resolve to proceed with
repair or restoration, the property shall be subject to an action for partition at the suit of any unit
owner or lienor, as if owned in common, in which event the net proceeds of sale, divided by the
Board of Managers or the insurance trustee, as a case may be, among all unit owners in
..."
proportion to their respective common interest (Exhibit F herein).
21. More than 75% of the units were destroyed or substantially damaged by the subject fire in
2012.
22. 75% or more of the unit owners did not duly and promptly resolve to proceed with repair
or restoration.
23. On August 6, 2017 a vote was taken by the members of the condominium association and
the vote was unanimous not to rebuild and nearly unanimous to sell all the condominium
property.
CLASS ACTION FEASABILITY
24. To maintain a partition action as required by the Condominium By-Laws, in order that the
entire property owned by some 396 individual owners can be sold to the contract vendee Eagle
52, LLC, upon information and belief, the only possible realistic way to facilitate such a partition
action is through the vehicle of a class action pursuant to Article 9 of the CPLR. CPLR Section
901 entitled Prerequisites to a Class Action specifically authorizes that one or more members of a
class may sue or be sued as representative parties on behalf of all if the five specific prerequisites
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for maintaining a class action are met.
25. Addressing said five prerequisites: the first is that the class is so numerous that joinder of
all members, whether otherwise required or permitted, isn't practicable.
26. The facts and circumstances as aforesaid authorize a finding that the joinder of all
members is impracticable. There are 396 individual unit owners. Each one has title to his or her
individual unit, although some of the units do not physically exist and others are completely
inhabitable since they have been destroyed. Suing each of these 396 unit owners individually
would necessitate naming each one as a defendant personally, serving them and their mortgagees
and/or lien holders with the Summons and Complaint and Notice of Pendency and moving
forward with a Supreme Court partition action in which each individual could be represented by
an attorney, be heard, and participate individually. It would be a logistical nightmare and an
extreme burden on the Court and the parties.
27. Moreover, as aforesaid, this fire occurred in 2012. In the ensuing eleven years there
may have been substantial changes in ownership, i.e. several of the unit owners may have
passed away and their tax map unit properties would have passed to their estates which could
necessiate involvement in Surrogate Courts all over the United States. Numerous of the unit
owners may have moved in the ensuing eleven years, and to try to locate them to serve them
personally in a lawsuit would also be a logistical nightmare and cost prohibitive.
28. The expense of suing every unit owner individually, tracking them down, conducting title
searches as to whether they are still the owners, and whether or not there are liens on the
properties, makes the joinder of all of the members impracticable under CPLR 901(1) and calls
out for class action treatment of this partition action.
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29. Upon information and belief, the applicable case law provides a presumption that if a
potential class has over 80 members the numerality requirement for class certification is met.
30. The second prerequisite under CPLR 901 is whether there are questions of law or fact
common to the class which predominate over any questions affecting all the individual members.
It is submitted that the questions of law and fact are common to the class and there are no
questions as to partition affecting individual members. The questions of law are whether the
partition action should be granted authorizing the sale of the entire parcel and all the tax map
numbers to the Plaintiff Eagle 52, LLC. Upon information and belief there are no questions of
fact as to what has occurred with the Grandview property since 2012 which would affect the right
to move forward and grant a partition action. In any event, if there are any questions of fact they
can certainly be handled as common questions of fact and certainly predominate over any
questions affecting only individual members. Upon information and belief there are no questions
of law or fact re partition which affect only individual members.
31. In that regard, if there are any issues of fact regarding each individual unit owner's
respective share of the proceeds of the sale, should the partition action be granted and the closing
be consummated, it is requested that all proceeds of the sale and the distribution of same be
subject to the further and continuing jurisdiction of this Court through the Representative
Defendant Board of Managers so that any issues regarding respective claims to the respective
unit owner's share be subject to this Court's determination after the sale has been consummated.
32. The CPLR 901(3) prerequisite is that the claims or defenses of the representative parties
are typical of the claims or defenses of the class. It is submitted that the Board of Managers, as
the authorized representative of all of the unit owners, has the same claims or defenses as all of
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the individual unit owners. Upon information and belief, since the partition action is authorised
under the By-Laws as a result of the total destruction of the premises, there are no claims or
defenses to the partition action.
33. Since the Board of Managers is specifically authorized to represent all the property
owners and members in all matters affecting their common interests, the Board is the logical
entity to represent the defendant class.
34. CPLR 901 (4) states that the "representative parties will fairly and adequately protect
the interest of the class is met by the facts and circumstances herein". Indeed it is the obligation
and duty of the Board of Managers to fairly and adequately protect the interests of the class, since
the class is the members of the condominium association. It is in the interest of the Board of
Managers, who is the contract vendor, to move forward to consummate the closing and obtain the
purchase price to be divided equitably between all members of the class.
35. CPLR 901 (5) requires that there will be a showing that the class action is superior to
other available methods for the fair and efficient adjudication of the controversy. It is submitted
that it is apparent under these facts and circumstances that a class action is the only feasible way
to obtain a judgment of partition which would enable the purchaser to obtain good title to the
property as well as enable the Defendants to obtain a reasonable, under the circumstances, return.
36. Upon information and belief, unless the class action is authorized and moves forward,
there will never be any return to the unit owners who have lost their unit and received nothing for
the past eleven years. Upon information and the will remain as a blight and non-
belief, property
tax revenue producing property.
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WHEREFORE, Plaintiffs demand judgment as follows:
1. Declaring that the premises are so situated that the sale thereof is necessary and that such
premises be sold by and under direction of the Court and conveyance given to the Purchaser
Eagle 52, LLC pursuant to the extant contract of purchase and sale.
2. That it be adjudged by such sale and conveyance pursuant thereto, that Defendants and all
persons claiming through or under Defendants subsequent of the filing of the Notice of Pendency
of this action be barred from all right, title and interest in the premises and possession, reversion,
remainder or otherwise; that the net proceeds