On June 13, 2022, Peter C. Dee of Tuttle Yick LLP achieved a Court ordered victory for Dean Poll, restauranteur and founder of Gallagher’s Steakhouse and Central Park Boathouse, against Gallagher’s Stud, Inc. (GSI) in New York County Supreme Court. Dee successfully argued that GSI improperly delayed, and Poll is entitled to specific performance to proceed with, the closing of a $22.3 million purchase of GSI’s 50% interest in Gallagher’s property at 228 West 52nd Street in Manhattan.
In May 2013, the parties entered into an option agreement for Poll to purchase GSI’s interest in Gallagher’s Steakhouse. On January 3, 2022, GSI advised Poll that it would not close until the resolution of a dispute over rent payments. Poll subsequently sued, seeking specific performance and alleging anticipatory breach of contract. GSI counterclaimed for declaratory judgments (1) estopping Poll from scheduling a closing before resolving the rent dispute; and (2) alleging that Poll breached the covenant of good faith and fair dealing.
The Court held that the rent dispute had no bearing on the parties’ ability to close in accordance with their agreement. The Court further granted Poll’s motion for preliminary injunction, prohibiting GSI from refusing to close on the sale of its interest in the property, and ordered the parties to attend a preliminary conference virtually on August 17, 2022.