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Palm Restaurant at 206 West St.Palm Restaurant at 206 West St. (NYLJ/Rick Kopstein)

A Commercial Division judge has rejected most of the summary judgment arguments made by owners of Palm, a famed Manhattan steakhouse, and ruled the dispute between descendants of the restaurant’s two founders can go to trial.

Justice Jeffrey Oing said in a Feb. 11 ruling that the grandchildren of one of the founders can proceed with their suit against their cousin and the other founder’s grandson.

The plaintiffs claim their side of the family was shut out of profits when the restaurant began expanding from its original location to new Palm steakhouses in the U.S. and abroad.

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