Builders Bank v. Newland Group

U.S. DISTRICT COURT
EASTERN DISTRICT OF NEW YORK
Contracts

New York Law Journal

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Judge Dora Irizarry

Builders Bank's 2009 lawsuit against Newland Group and Movtady sought building foreclosure. Movtady was Newland's sole member. A September 2012 settlement—comprising a Settlement Agreement, Agreed Order, and a Proposed Order and Judgment of Foreclosure and Sale—joined all interested parties. An Oct. 12 letter by counsel for non-parties Gliklad and Devterova claimed Gliklad and Devterova controlled Newland, which was not bound by the Settlement Agreement because Movtady lacked authority to act for Newland. The Gliklad/Devterova claims did not affect the fully executed, binding settlement. Thus the Agreed Order and Proposed Judgment were enforceable. When the settlement was fully executed—by Sept. 4, 2012—Movtady was the sole member capable of acting for Newland. Further Gliklad's and Devterova's statement that "as of Oct. 11, 2012" Movtady lacked rights as to Newland tacitly acknowledged his capacity to act for Newland before that date. All facts alleged by Gliklad and Devterova occurred after Movtady signed the settlement on Newland's behalf on Sept. 4. Thus, on Sept. 4, when the settlement was fully executed, its parties were bound by the terms of the Settlement Agreement and Agreed Order.

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