Judge Denies Motion to Dismiss MCCM Complaint Arising Out of Closure of The Inn on Church
Jun 13, 2021
The Inn on Church in the Historic Newman-Dean House was established as a joint venture among three Fairport residents, and opened to guests in December 2016. It enjoyed increasing community visibility, and proved to be a much sought after lodging for out of town visitors, and local people desiring a “stay-cation” in the Village.
Regrettably, in 2020 two of the co-venturers abandoned the joint venture, evicted the Inn operation, and moved their family into the property. When the two co-venturers refused to compensate their partner for her substantial contributions to the property, she retained MCCM’s litigation team to initiate a lawsuit in Monroe County Supreme Court against them as defendants, claiming breach of the joint venture contract, breach of fiduciary duty and unjust enrichment. The lawsuit seeks, among other things, an accounting and liquidation of the joint venture, and recoupment of plaintiff’s investment.
The defendants moved to dismiss the 27 page complaint, arguing that it failed to state a claim. In an extensive and well-reasoned opinion, Hon. J. Scott Odorisi, the Presiding Justice of the Commercial Division, rejected defendants’ argument that a joint venture had not been alleged and supported by the documentary evidence – including a written business plan that the parties had operated under for four years. The Court also ruled that plaintiff’s notice of pendency filed against the Inn property was valid and would not be cancelled. You can read the Court’s opinion here.
The case will now proceed to the discovery and trial phases.
The plaintiffs are being represented by Kevin Cooman and Peter Weishaar, who continue to lead MCCM’s commercial litigation team representing both plaintiffs and defendants in a wide variety of business disputes.
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