Justice David Saxe
Devash bought a Manhattan building. Bank of America (BOA) became trustee for the holder its mortgage loan. CWCapital Asset Management was the loan’s special servicer. First Department upheld dismissal of claims of contract breach, and tortious interference with contract and prospective economic advantage in Devash’s suit over a “predatory lending scheme” where BOA and CWCapital sold its loan to German American Capital, which planned to foreclose. Because Devash sought damages when the mortgage compact limited remedies for unreasonably withheld consent to injunctive relief or declaratory judgment, Devash’s contract breach claim was properly dismissed. Distinguishing Banc of Am. Sec. LLC v. Solow Bldg. Co. II the court observed that CWCapital’s failure to approve proposed leases was intended to maximize the lender’s options and the property’sand loan’svalue. Thus, CWCapital’s alleged conduct advanced a legitimate economic self-interest. In finding Devash’s tortious interference with contract claim properly dismissed, First Departmentciting Nu-Life Const. Corp. v. Board of Educ. of City of N.Y.noted that agent CWCapital could not be held liable for inducing principal BOA to breach a contract with a third person.
