Court Grants Motion To Substitute Successor Entity Despite Objections About Its Impact On Ongoing Discovery

Posted: April 16, 2025 / Written by: Jeffrey M. Eilender, Thomas A. Kissane, Samuel L. Butt, Joshua Wurtzel, Channing J. Turner / Category Discovery/Disclosure

Court Grants Motion To Substitute Successor Entity Despite Objections About Its Impact On Ongoing Discovery

On January 31, 2025, Justice Andrew Borrok granted a motion to substitute the plaintiff entities for their successors despite objections from the defendant concerning the substitution’s impact on ongoing discovery. In NG Crown 20 E. 46th Street LLC, et al. v. 18-20/22 East 46th Street LLC, Index No. 656817/2022, the Court overruled the defendant’s objections, explaining:

Pursuant to CPLR § 1021, a “motion for substitution may be made by the successors or representatives of a party or by any party.” “Upon any transfer of interest, the action may be continued by or against the original parties unless the court directs the person to whom the interest is transferred to be substituted or joined in the action” (CPLR § 1018). The defendant in this case is simply not correct that there is any discernable prejudice by virtue of the substitution. Paul Wassenbergh’s (NG Crown’s representative) deposition has been schedule for March 18, 2025. This has been so-ordered by the Court. This case has been pending for two years where the parties have engaged in discovery. Even if this were not the case, and/or additional third-party discovery is needed, the defendant is entitled to all third-party discovery “relevant to the prosecution or defense of [this] action” (Kapon v Koch, 23 NY3d 32 [2014]; CPLR § 3101 [a][4]. The lender-intervenor has also been responsive in discovery. Thus, the motion is granted.

The attorneys at Schlam Stone & Dolan frequently advise clients concerning discovery obligations and litigation strategy. Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions concerning such issues.