Eagle Tenants Corp. v. Ben Fishbein Et Al‪.‬

Ordered that the order and judgment is reversed insofar as appealed from, on the law, with costs, the plaintiff's cross motion
for partial summary judgment on its first and second causes of action is denied, and, upon searching the record, the plaintiff's
second cause of action to recover damages for constructive fraud is dismissed. The instant action involves a warehouse located at 28-44 Cadman Plaza West in Brooklyn, within the Fulton Ferry Historic
District. In 1979 the New York City Planning Commission issued a special permit to the defendant Ben Fishbein to convert the
warehouse to a mixed commercial and residential use. As a condition to the issuance of the special permit, Fishbein covenanted
to implement a "Continuing Maintenance Program", which involved certain obligations which are in excess of the ordinary requirements
for such structures (see, NY City Zoning Resolution § 74-711; Administrative Code of City of New York, tit 24, ch 3). In 1984,
Fishbein's nominee corporation, the defendant 28 Cadman Plaza West, Inc., conveyed the property to the plaintiff Eagle Tenants
Corp., a residential cooperative corporation, whose shareholders took title pursuant to a cooperative offering plan of which
the defendant 28 Cadman Plaza West, Inc., was the sponsor. The plaintiff thereafter commenced this action on behalf of its
shareholders, alleging, inter alia, that Fishbein fraudulently concealed the existence of the Continuing Maintenance Program
obligations.