Dechert Secures Two Appellate Victories in Schron, Cammeby’s Equity Holdings Cases
May 23, 2012
Dechert News Release
Dechert LLP scored two appellate victories for its clients yesterday in the ongoing representation of Rubin Schron, Cammeby’s Equity Holdings LLC, and affiliated companies. In the first decision, Dechert won an appeal in the New York Supreme Court’s Appellate Division, First Department on behalf of clients Rubin Schron and Cammeby’s Equity Holdings LLC. The First Department affirmed earlier victories before the New York Supreme Court (Commercial Division) (Justice O. Peter Sherwood and Justice James A. Yates) granting Dechert’s motion to exclude parol evidence and dismissing a cause of action seeking to void an option held by Cammeby’s as part of the large-scale litigation involving Schron, a New York real estate investor, and a group of his companies against former Troutman Sanders attorney Leonard Grunstein; his business partner, investment banker Murray Forman; and companies under their control. Andrew J. Levander argued the appeal. Steven A. Engel, Karen Daly and Christopher M. Varano also worked on the briefs. The First Department’s decision confirms the validity of an option agreement allowing Cammeby’s to purchase SavaSeniorCare LLC, a national nursing home company. Justice James M. Catterson, writing for an unanimous panel, rejected the “tortured argument” that boilerplate contractual language referring to “other good and valuable consideration” could be read to import a requirement that funding of a $100 million loan, referred to in different contracts among related parties, was a precondition to the option right.
In the second decision, the First Department issued an order resolving another Schron-related lawsuit, concerning a separate option that a Schron company, Cammeby’s Funding LLC, has to acquire one-third of the shares of Fundamental Long Term Care Holdings LLC. Previously, the First Department had affirmed a decision by Justice Sherwood of the New York Supreme Court (Commercial Division) granting summary judgment on Cammeby’s claims to enforce the Fundamental option. After Fundamental moved for leave to appeal to the Court of Appeals, Cammeby’s moved to vacate the stay pending appeal. The First Department’s order resolved the pending appeal and should allow Cammeby’s to move forward with closing on the option. Engel argued the appeal. Levander and John P. O’Brien also worked on the briefs.
Caption: Rubin Schron, et al. v. Troutman Sanders LLP, et al. (650702/10); Mich II Holdings, LLC et al. v. Schron, et al., (600736/10); Fundamental Long Term Care Holdings LLC v. Cammeby’s Funding LLC, No. 650332/11
Dechert Team: Andrew J. Levander (NY), Steven A. Engel (NY/WAS), Karen Daly (PHI), John P. O’Brien (NY) and Christopher M. Varano (PHI). In addition, the Schron team has included James M. McGuire (NY), David A. Kotler (PRIN), Nicolle L. Jacoby (NY), K. Keely Rankin (NY), Joseph M. Schuster (NY), Lauren Kurtz (NY), Katherine Wyman (WAS), Jared S. Siegel (NY) and Danielle Toaltoan (NY).