Fox Rothschild attorneys Joshua Kopelowitz and Fawn Lee secured a significant victory for DMG Buffalo Student Income Master LP, in a promissory note enforcement action filed in the Supreme Court of the State of New York, New York County.

The court granted Fox’s motion for summary judgment in lieu of a complaint pursuant to CPLR 3213 against defendant Amherst Forest Holdings LLC. The case arose from a promissory note under which our client provided financing to the defendant for the acquisition and development of a rental property in Amherst, New York, intended for student housing. Under the note, the defendant agreed to repay the maximum principal sum of up to $6,000,000, together with interest, on the maturity date of January 31, 2024. Fox Rothschild's client advanced a total of $4,215,000 to the defendant pursuant to the note.

Despite making eight partial interest payments totaling $684,722.21 between April 2022 and June 2024, the defendant failed to repay the outstanding principal and accrued interest by the maturity date and ceased making any payments after June 2024. In opposition, the defendant raised an equitable estoppel argument, contending that the maturity date of the promissory note had been extended. The court rejected this defense and found that the argument was moot in any event, as even the purported extension date had passed, and the defendant still had not satisfied its obligations under the note.

The court ordered DMG to pay $4,774,015.32, plus 12% interest from January 31, 2024, which is currently $5,849,937.37, with interest continuing to accrue. Attorney fees were also awarded.

As this article contains statements regarding past performance, please note that results may vary depending on your particular facts and legal circumstances.