Fundamental Long Term Care Holdings, LLC v. Cammeby's Funding LLC

Full title: FUNDAMENTAL LONG TERM CARE HOLDINGS, LLC, et al., Plaintiffs–Appellants…

Court: Supreme Court, Appellate Division, First Department, New York.

Date published: Feb 7, 2012

92 A.D.3d 449 (N.Y. App. Div. 2012)

938 N.Y.S.2d 57

2012 N.Y. Slip Op. 825

Opinion

2012-02-7

FUNDAMENTAL LONG TERM CARE HOLDINGS, LLC, et al., Plaintiffs–Appellants, v. CAMMEBY'S FUNDING LLC, et al., Defendants–Respondents.Cammeby's Funding LLC, et al., Counterclaim–Plaintiffs–Respondents, v. Fundamental Long Term Care Holdings, LLC, et al., Counterclaim–Defendants–Appellants.

Arent Fox LLP, New York (Allen G. Reiter of counsel), for Fundamental Long Term Care Holdings, LLC, appellant. DLA Piper LLP (US), New York (Shand S. Stephens of counsel), for Leonard Grunstein and Murray Forman, appellants.

MAZZARELLI

Arent Fox LLP, New York (Allen G. Reiter of counsel), for Fundamental Long Term Care Holdings, LLC, appellant. DLA Piper LLP (US), New York (Shand S. Stephens of counsel), for Leonard Grunstein and Murray Forman, appellants. Dechert LLP, New York (Steven A. Engel of counsel), for respondents.MAZZARELLI, J.P., ANDRIAS, DeGRASSE, RICHTER, ABDUS–SALAAM, JJ.

Order, Supreme Court, New York County (O. Peter Sherwood, J.), entered August 29, 2011, which granted defendants' motion for summary judgment and denied plaintiffs' cross motion for summary judgment, unanimously affirmed, with costs. Order, same court and Justice, entered October 6, 2011, which, inter alia, dismissed the complaint and directed the Clerk to enter judgment declaring that plaintiff Fundamental Long Term Care Holdings, LLC (the LLC) must issue ownership of 1/3 of its equity units to defendant Cammeby's Funding LLC's designee without regard to the capital contribution requirement in the LLC operating agreement, unanimously affirmed, with costs.

Regardless of which document was executed first, the motion court correctly found unambiguous the parties' option agreement entitling defendant Cammeby's to acquire units of the LLC for $1,000 without the need for any capital contribution. We note that the integration clause in the option agreement bars parol evidence of the parties' intent and of any other agreements or understandings ( see Torres v. D'Alesso, 80 A.D.3d 46, 910 N.Y.S.2d 1 [2010] ). Under the circumstances, we reject plaintiffs' contention that defendants obtained an improper windfall.

We have considered plaintiffs' additional arguments and find them unavailing.