Judge Swain
http://nycourts.law.com/CourtDocumentViewer.asp?view=Document&docID=118741
PLAINTIFF is the alleged assignee of Lehman Brothers Bank FSB’s rights in a real estate acquisition financing transaction. Its March 12, 2009, amended complaint asserted claims for contract breach and declaratory judgment against defendants based on three separate guarantee agreements executed in Lehman Brothers’ favor. Defendants’ April 14 answer to plaintiff’s amended complaint asserted affirmative defenses, including undue influence and fraudulent inducement. Distinguishing Bank of New York v. Tri Polyta Finance B.V., the court permitted defendants to amend their pleadings. Their assertion that the contract was unenforceable as fraudulently induced, if meritorious, could enable them to avoid liability under the guarantees. Also, defendants’ affirmative defenses premised on plaintiff’s alleged lack of standing and the alleged illegality of the guarantees’ transfer, if meritorious, would defeat plaintiff’s claim for relief. Plaintiff’s motions for summary judgment, and to strike defendants’ affirmative defenses and jury demand were denied without prejudice to later renewal.
