Complaint: Grant Avenue Owners Corp v. Grant Briarwood LLC

FILED: BRONX COUNTY CLERK 03/30/2016 04:06 PM INDEX NO.
22173/2016E
NYSCEF DOC. NO. 1 RECEIVED NYSCEF: 03/30/2016
SUPREME COURT OF THE STATE OF NEW YORK

COUNTY OF BRONX
--------------------x Index No.
GRANT AVENUE OWNERS CORPORATION, for itself Date of Purchase:
and on behalf of its Tenant-Shareholders,
SUMMONS
Plaintiff,
Plaintiff designates Bronx
- against - County as the place of trial.
The basis of venue is the
GRANT/BRIARWOOD, LLC, VINCENT L. RISO, location of the real property
RAYMOND RISO, JAMES RISO, HOW ARD which is the subject of this
GOODMAN, BRIARWOOD PROPERTIES, INC. and action.
MVM REALTY ASSOCIATES, LLC d/b/a MVM
ASSOCIATES,
Defendants.
TO THE ABOVE-NAMED DEFENDANT(S):
You are hereby summoned to answer the complaint in this action and to serve a copy of your
answer on the undersigned attomey(s) for plaintiff(s) within twenty (20) days after the service of this
summons, exclusive of the day of service (or within thirty (30) days after service is completed if this
summons is not personally delivered to you within the State of New York); and in case of your
failure to appear or answer, judgment will be taken against you by default for the relief demanded in
the complaint.
Dated: New York, New York

March 30, 2016
BORAH, GOLDSTEIN, ALTSCHULER,
NAHt& GOIDEL, P.C.
By: _ _,,__ _ _ _ _ _ _ _ __
Jose I. Farca
A omeys for Plaintiff
: 7 Broadway, 61h Floor
, ew York, New York 10013
(212) 431-1300, Ext. 610
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COUNTY OF BRONX
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GRANT A VENUE OWNERS CORPORATION, for itself
and on behalf of its Tenant-Shareholders,
Plaintiff,
- against - VERIFIED COMPLAINT
GRANT/BRIARWOOD, LLC, VINCENT L. RISO,

RAYMOND RISO, JAMES RISO, HOWARD
GOODMAN, BRIARWOOD PROPERTIES, INC. and
ASSOCIATES,
Defendants.
Plaintiff GRANT AVENUE OWNERS CORPORATION, for itself and on behalf of its
tenant-shareholders, by its attorneys BORAH, GOLDSTEIN, ALTSCHULER, NAHINS & GOIDEL,
P .C., as and for its complaint alleges as follows:
BACKGROUND
A. The Parties
1. Plaintiff GRANT A VENUE OWNERS CORPORATION ("Plaintiff' or "Co-op"), a
domestic corporation duly organized and existing under the laws of the state ofNew York, is
a cooperative housing corporation which owns the property known as the Solara and located
at 1259-1275 Grant Avenue, Bronx, New York (Block 2453, Lots 81 and 68, respectively, of
the Bronx County Tax Map) (the "Property").
2. Defendant GRANT/BRIARWOOD, LLC (the "Sponsor") is, upon information
and belief, a domestic limited liability company organized and existing under the laws of the
state ofNew York, having a place of business at 36-35 Bell Boulevard, Bayside, New York,
and was at all relevant times the Sponsor of the Co-op.
3. Defendants VINCENT L. Riso, RAYMOND Riso, JAMES RISO AND HOWARD
GOODMAN (collectively, the "Principals"), are natural persons who, upon information and
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belief, reside in the state of New York or have a business address at 36-35 Bell Boulevard,
Bayside, New York, and were at all relevant times members and principals of the Sponsor.
4. Defendant BRIARWOOD PROPERTIES, INC. ("Briarwood") is, upon information
and belief, a domestic corporation duly organized and existing under the laws of the state of
New York, having a place of business at 36-35 Bell Boulevard, Bayside, New York, and was
at all relevant times an affiliated entity of the Sponsor, the Sponsor's managing agent for the
Property and one of its selling agents for the Co-op.
5. Defendant MVM REAL TY AS SOCIA TES, LLC DIBI A MVM AssOCIA TES
("MVM") is, upon information and belief, a domestic limited liability company organized
and existing under the laws of the state of New York, having a place of business at 954
Gerard A venue, Bronx, New York, and was at all relevant times one of the Sponsor's selling
agents for the Co-op.
B. The Property and the Offering Plan
6. In June 2007, the Sponsor entered into a number of agreements including
certain regulatory agreements with governmental agencies including the NYC Partnership
Housing Development Fund Company, Inc. (the "HDFC"), and the New York City Housing
Development Corporation (the "HDC"), under which the HDFC would hold title to the
Property while the Sponsor agreed to develop and construct thereon two residential
apartment buildings with parking, after which the HDFC would convey the Property to the
Co-op.
7. In accordance with said agreements, upon information and belief, the Sponsor
filed plans with the New York City Department of Buildings in June 2007 to construct two
(2) new ten-story residential buildings with parking at the Property.
8. Upon information and belief, the Sponsor filed a Cooperative Offering Plan,
which was accepted for filing on or about September 5, 2008 (the Offering Plan, as amended,
hereinafter referred to as the "Offering Plan" or "Plan"), to construct and develop two (2)
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Ill
new ten-story residential buildings containing 160 residential apartments - 80 apartments at
1259 Grant Avenue known as Solara West, and 80 apartments at 127 5 Grant Avenue known
as Solara East - and 73 parking space units (1259 and 1275 Grant Avenue, collectively, the
"Buildings"), both of which Buildings are located upon the Property.
9. Upon information and belief, on May 12, 2008, the Sponsor and its Principals
jointly and severally certified the Offering Plan.
10. Upon information and belief, the Sponsor constructed the Buildings at the
Property.
11. Upon information and belief, beginning May 12, 2008, defendants, including
Briarwood and MVM, marketed the Co-op to sell residential apartments and parking spaces
(the apartments and parking spaces, collectively, the "Units") in the Buildings.
12. Upon information and belief, the first Purchase Agreements for Units in the
Co-op were entered into by the Sponsor on or about January 5, 2009.
13. Upon information and belief, the Plan was declared effective on January 22,
2010, as set forth in the Second Amendment to the Offering Plan dated February 4, 2010.
14. Upon information and belief, final Certificates of Occupancy for both of the
Co-op Buildings were issued on April 1, 2010.
15. Upon information and belief, by deed dated April 16, 2010, the HDFC
conveyed title to the Property to the Co-op.
16. Upon information and belief, on April 16, 2010, the Sponsor and/or Principals
caused the Co-op to enter into a Management Agreement with Sponsor's affiliate Briarwood
to operate and manage the Co-op and its Buildings pursuant to the terms and conditions of
the Offering Plan.
17. Upon information and belief, the first closing on the sale of a Unit to a
Tenant-Shareholder in the Co-op pursuant to a Purchase Agreement with the Sponsor
occurred on or about May 10, 2010.
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18. Upon information and belief, pursuant to the By-Laws of the Co-op which are
contained in the Plan, the initial Board of Directors was comprised of three (3) directors until
the first meeting of Tenant-Shareholders.
19. Sponsor retained voting control of the initial Board of Directors of the Co-op,
upon information and belief, by defendants Vincent L. Riso, Raymond Riso and James Riso
holding all three of the positions on the Board.
20. Upon information and belief, until March 8, 2011, the Sponsor retained voting
control of the Board of Directors of the Co-op via defendants Vincent L. Riso, Raymond
Riso and James Riso holding all three of the positions on the Board.
21. Upon information and belief, the Sponsor relinquished control of the Board of
Directors of the Co-op on or about March 8, 2011, upon an election at which four out of five
of the directors elected were residential apartment unit owners in the Co-op.
22. Upon information and belief, the Sponsor nevertheless continued to maintain
a representative on the Board of Directors of the Co-op- to wit, defendant Vincent L. Riso-
who remained as the fifth director until after all Units in the Co-op were sold.
23. Upon information and belief, all Units have been sold as of the date hereof.
C. Defendants' Obligations
24. The Plan provides, in part (at page 159), as follows:
2. All representations under the Offering Plan, all obligations

pursuant to the General Business Law, and such additional
obligations under the Offering Plan which are to be performed
subsequent to the Closing will survive delivery of the deed.
25. The Plan provides, in part (at pages 159-160), as follows:
6. The Sponsor will diligently, expeditiously and at its own cost,

complete construction of the development substantially in accordance
with the plans and specifications described herein and will diligently
perform all of its obligations set forth in this Offering Plan and will
provide the Board of Directors a full set of building plans filed with
the local municipality together with any "field changes" made during
the course of construction. Although the Sponsor intends to use the
materials, fixtures, appliances and equipment described herein and in
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the building plans, the Sponsor reserves the right to substitute
materials, fixtures, appliances and equipment of equal or better
quality or design for any of those set forth. Sponsor reserves the right
to change the size, number and location of the Buildings and other
improvements as well as the Apartment Corporation Common Area,
provided such changes do not change or adversely affect the Shares
appurtenant to an Apartment for any Apartment for which a Stock-
Transfer has taken place or for which a Purchase Agreement has been
executed and is in effect unless all affected Purchasers consent in
writing to such a change and all affected Purchasers are given the
right to rescind their Purchase Agreement and to receive the return of
their down payment. No such change will be made unless it is first
disclosed in a duly filed amendment to the Offering Plan.
26. The Plan provides, in part (at page 161), as follows:
9. ***
Sponsor agrees to pay for authorized and proper work in the
establishment and sale of the Apartment Corporation, including but
not limited to advertising, printing, architectural and legal services.
Sponsor will defend any suits or proceedings arising out of

Sponsor's acts or omissions in connection with the establishment and
sale of the Shares appurtenant to the Apartments in the Apartment
Corporation and indemnify the Apartment Corporation from any
liability arising out of Sponsor's acts or omissions in connection with
the establishment and sale of the Shares appurtenant to the
Apartments in the Apartment Corporation.
27. The Plan provides, in part (at pages 163 and 166), as follows:
14. ***
The Sponsor will promptly correct any material patent defects
in the construction of the Buildings and the Apartments thereon, or in
the installation or operations of any mechanical equipment therein,
due to substantially improper workmanship or material substantially
at variance with the architectural plans and specifications, provided
the Sponsor is notified of such defect in writing by certified mail,
return receipt requested (a) within sixty (60) days from the date of the
Stock-Transfer to an Apartment and (b) within one year from the
Closing as it applies to the Common Area of the Buildings to .the
Apartment Corporation. If any defect in the Common Areas can only
be detected after said period of occupancy of a particular Apartment,
Sponsor will correct said defect in the construction of the Common
Areas in the installation or operation of any mechanical equipment
therein due to improper workmanship or materials substantially at
variance with the architectural plans and specifications, if notified by
the Board within sixty (60) days from the date of the Stock-Transfer
to or first leasing of that particular Apartment. Sponsor will also
correct any latent defects in the construction of the Buildings and the
Apartments therein or in the installation or operation of any
mechanical equipment therein due to substantially improper
workmanship or material substantially at variance with the
architectural plans and specifications, provided it is notified of such
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defects in writing by the Tenant-Shareholder as to such Apartment
within one (1) year from the date of the Stock-Transfer of such
Apartment or is notified by the Board with respect to Common Areas
within one year after the Closing. On three (3) days' notice from
Sponsor the Board and/or the Tenant-Shareholder in question shall
allow Sponsor, Sponsor's contractors and/or the Managing Agent
access to the Buildings or the Apartment in question on any weekday
which is not celebrated as a federal or state holiday to inspect and/or
correct such defect. The quality of construction shall be comparable
to local standards customary in the particular trade and in accordance
with the plans and specifications.
***
Notwithstanding the above, any exception, exclusion or
standard which does not meet or exceed a relevant specific standard
of the applicable building code, or in the absence of such relevant
specific standard a locally accepted building practice, shall be void as
contrary to public policy and shall be deemed to establish the
applicable building code standard or locally accepted building
practice as the warranty standard.
***
28. The Purchase Agreements for the purchase and sale of Units expressly
incorporated the terms and conditions of the Plan, providing that:
Purchaser has received a copy of the Plan and all filed amendments to
the Plan (which includes the Proprietary Lease to be entered into with
the Apartment Corporation, the schedules, By-Laws and House Rules
attached thereto, all of which are incorporated herein by reference and
made part of this Agreement with the same force and effect as if fully
set forth herein) at least three (3) full business days prior to Purchaser
executing this Purchase Agreement.
29. The Purchase Agreements also provide that:
. . . In the event of any inconsistency or conflict between the

provisions of this Agreement and those contained in the Plan or
amendments the provisions of the Plan and amendments shall govern
and be binding.
30. The Plan provided that the Sponsor would perform such work and supply such
material in order to complete construction of the Buildings in accordance with the plans filed
with the New York City Department of Buildings.
31. Under the Plan, the Sponsor was required to correct, repair or replace any and
all defects relating to the construction of the Buildings, or the installation or operation of any
appliances, fixtures or equipment if the defects were due to improper workmanship or
construction practices and if the materials are materially at variance with the plans.
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32. The Plan further provided that upon the closing of the sale of each Unit, the
Sponsor shall assign all warranties in its possession to the purchaser of the Unit.
33. Sponsor and Principals represented in the Plan that the Plan did not knowingly
contain any false statement of fact or knowingly omit any material fact and that all statements
and representations made in the Plan were true.
34. Sponsor and Principals warranted m the Plan that they have primary
responsibility for compliance with the provisions of Article 23-A of the General Business
Law, the Regulations of the Attorney General in Part 20, and such other laws and regulations
as may be applicable, and that they read the entire Plan and investigated the facts set forth
therein.
35. Sponsor and Principals certified that the Plan did not omit any material facts,
contain any untrue statements of material fact, contain any fraud, deception or concealment,
or contain any promises or representations beyond reasonable expectation.
D. The Buildings, Residential Units And Common

Areas Are Plagued By Construction Defects
36. Subsequent to the commencement of occupancy by purchasers of Units in the
Buildings, certain defects in the construction of the Buildings, including Units and Common
Areas were discovered.
37. These defects include, but are not limited to:
(a) the failure to properly construct the "A" line of residential apartments
in both Buildings in the appropriate manner and with the appropriate
materials and the requisite noise attenuation, leading to unreasonable
noise transmission into those apartments, and resulting in the issuance
of municipal violations for noise;
(b) the failure to properly construct the windows, roof, parapets and
facades of both Buildings in the appropriate manner and with the
appropriate materials, leading, inter alia, to leaks into various Units
and Commons Areas; and
(c) the failure to properly construct the foundations and retaining walls of
the Buildings in the appropriate manner and with the appropriate
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materials, leading, inter alia, to the sinking of the courtyard and the
misalignment of the courtyard gates surrounding the Buildings.
38. The existence of construction defects were communicated to the Sponsor or
Briarwood.
39. The Sponsor and/or Briarwood acknowledged and agreed to repair certain of
the construction defects, and purported to take remedial action to address some of them.
40. However, as a result of the original defective construction of the Buildings
and/or the failure to take proper and effective remedial measures, numerous leaks, noise, and
other conditions that do not conform to the applicable laws, regulations, codes and legal
requirements persisted and worsened.
AS AND FOR A FIRST CAUSE OF ACTION
41. Plaintiff incorporates the allegations set forth in ,i,i 1 through 40 above by
reference.
42. The Plan provides, among other things, that the Sponsor will perform such
work and supply such materials, and to cause the same to be performed and supplied, as is
necessary in order to complete the design and construction in accordance with the plans and
specifications for the design and construction work filed with the Department of Buildings of
the City of New York and other appropriate governmental authorities and generally in
accordance with good design and construction standards and practices.
43. The Sponsor entered into Purchase Agreements to sell Units in the Buildings
to Plaintiff's Tenant-Shareholders, which Purchase Agreements provided, inter alia, that the
terms and conditions of the Plan were incorporated therein.
44. As signatories to the Plan, the Sponsor and Principals agreed to undertake and
complete construction and development of the Buildings substantially in accordance with the
plans and specifications filed with the New York City Department of Buildings.
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45. The Sponsor and Principals failed to complete construction and development
of the Buildings substantially in accordance with the plans and specifications filed with the
New York City Department of Buildings.
46. The Sponsor and Principals breached contractual obligations to Plaintiff and
its Tenant-Shareholders in that the Buildings were improperly and inadequately designed and
were not constructed and completed in a competent and workmanlike manner and in
accordance with the plans and specifications for the Buildings as required by the Plan.
47. By reason of the. foregoing, Plaintiff and its Tenant-Shareholders have
suffered and will continue to suffer damages in an amount to be determined at trial, but
believed to be in excess of $2,000,000.
48. The Sponsor and Principals are jointly and severally liable to Plaintiff and its
Tenant-Shareholders under the Plan.
49. Accordingly, Plaintiff requests judgment on its own behalf and on behalf of
multiple Tenant-Shareholders against the Sponsor and Principals jointly and severally in the
amount of not less than $2,000,000.
AS AND FOR A SECOND CAUSE OF ACTION
reference.
51. Pursuant to the Plan, the Sponsor gave the Co-op a warranty that:
The Sponsor will promptly correct any material patent defects in the
construction of the Buildings and the Apartments thereon, or in the
installation or operations of any mechanical equipment therein, due to
substantially improper workmanship or material substantially at
variance with the architectural plans and specifications ...
52. The Sponsor received notice of and acknowledged the existence of defects in
the construction or rehabilitation of the Buildings.
53. The Sponsor failed to correct such defects.
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54. By reason of the foregoing, Plaintiff and its Tenant-Shareholders have
56. Accordingly, Plaintiff requests judgment against the Sponsor and Principals
jointly and severally in the amount of not less than $2,000,000.
AS AND FOR A THIRD CAUSE OF ACTION
reference.
58. The Sponsor's Purchase Agreements contained an implied duty and covenant
of good faith and fair dealing to perform the required work and supply the required materials,
and to cause the same to be performed and supplied, as is necessary in order to complete the
construction and development of the Buildings substantially in accordance with the plans and
specifications for the design and construction work filed with the Department of Buildings of
the City of New York and other appropriate governmental authorities, and generally in
accordance with good design and construction standards and practices.
59. The Sponsor breached its implied contractual duty of good faith and fair
dealing to Plaintiff and its Tenant-Shareholders in that the Buildings were improperly and
inadequately constructed or developed and completed in a competent and workmanlike
manner and in accordance with the plans and specifications for the Building as required by
the Plan.
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62. Accordingly, Plaintiff requests judgment for itself and on behalf of and its
Tenant-Shareholders against the Sponsor and Principals jointly and severally in the amount
of not less than $2,000,000.
AS AND FOR A FOURTH CAUSE OF ACTION
63. Plaintiff incorporates the allegations set forth in ,r,r 1 through 62 above by
reference.
64. Under applicable law, Sponsor and Principals impliedly warranted to Plaintiff
and purchasers of Units that the Buildings, including Units and commons areas, would be
constructed in a skillful, careful and workmanlike manner, consistent with proper design,
engineering and construction standards and practices, free of material, latent, design and
structural defects.
65. Plaintiff and/or its Tenant-Shareholders timely notified the Sponsor and/or its
managing agent, Briarwood, of the existence of construction defects in the Buildings,
including Units and commons areas, in accordance with applicable law of Sponsor's
breaches of warranties.
66. The Sponsor and Principals their warranties and, as a result of its breach of
contract, the Buildings, including Units and commons areas, were improperly and
inadequately constructed and completed in a competent and workmanlike manner and in
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69. Accordingly, Plaintiff requests judgment on its own behalf and on behalf of its
Tenant-Shareholders against the Sponsor and Principals jointly and severally in the amount
of not less than $2,000,000.
AS AND FOR A FIFTH CAUSE OF ACTION
reference.
71. The Sponsor had a duty to Plaintiff and its Tenant-Shareholders to cause the
Buildings to be constructed and completed in a competent and workmanlike manner, in
accordance with the Building Plans and Specifications, and proper design, engineering and
construction standards and practices using all due care.
72. The Sponsor failed to discharge and perform its duty to Plaintiff and its
Tenant-Shareholders and, as a result of Sponsor's negligence, the Buildings were improperly
and inadequately constructed and completed in a competent and workmanlike manner and in
Tenant-Shareholders against the Sponsor jointly and severally in the amount of not less than
$2,000,000.
AS AND FOR A SIXTH CAUSE OF ACTION
reference.
76. Plaintiff claims that the Sponsor and Principals are jointly and severally
required to comply with their contractual and common law duties to correct and remedy the
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various defects and conditions that pertain in the Buildings in order to bring same into
conformity with the plans and specifications for the Buildings as required by the Plan,
including, but not limited to, the examples particularly alleged above.
77. Upon information and belief, the Sponsor and Principals deny Plaintiffs
claims.
78. There is thus a dispute as to the respective rights and legal relations by and
between the Sponsor and Principals and the Plaintiff with respect to the Plan and Buildings.
79. Because of such dispute, a judicial determination and a declaration as to the
respective rights of the parties is desirable and necessary in order that the parties' rights may
be determined and adjudged without Plaintiff and its Tenant-Shareholders experiencing a
loss of their valuable and unique rights with respect to the Plan and the Buildings.
80. Plaintiff has no adequate remedy at law.
81. Plaintiff requests judgment declaring that the Sponsor and Principals are
jointly and severally required to comply, and enjoining and directing the Sponsor and
Principals to comply, with their contractual and common law duties to correct and remedy
the various defects and conditions that pertain in the Buildings in order to bring same into
conformity with the plans and specifications for the Building as required by the Plan,
including the examples particularly alleged above.
AS AND FOR A SEVENTH CAUSE OF ACTION
reference.
83. Beginning in or about 2008, the Sponsor and Principals offered for sale to the
public Units in the Co-op and caused to be published and distributed to the public and
Plaintiff and its Tenant-Shareholders, brochures and advertisements, promising, among other
things, that the Buildings would be constructed and completed in accordance with all
applicable zoning and building laws, regulations, codes and other requirements of the City of
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New York, all as part of a scheme or artifice to deceive and defraud Plaintiff and its Tenant-
Shareholders and others by means of false and fraudulent representations and material
om1ss10ns.
84. In furtherance of this scheme or artifice to deceive and defraud, beginning in
or about 2008, the Sponsor and Principals, and their selling agents Briarwood and MVM,
falsely stated and represented to Plaintiff and its Tenant-Shareholders, both verbally and in
brochures and advertisements published in connection therewith, and in the Purchase
Agreements entered into by Unit purchasers, that the Buildings would be and were properly
and adequately constructed and completed in a competent and workmanlike manner, in
accordance with the Building Plans and Specifications and proper design, engineering and
construction practices.
85. The statements and representations made by the Sponsor and Principals, and
their selling agents Briarwood and MVM, and the omissions as described above and
incorporated herein by reference, were false, in that the Buildings were improperly and
inadequately constructed and completed in an incompetent and unworkmanlike manner, with
material design and construction defects not in accordance with the Plans and Specifications
for the Buildings.
86. Beginning in 2008 and continuing to date, the defendants knew that the
statements and representations and omissions were false at the times they were made and/or
concealed, and were further made and/or omitted for the purpose of deceiving and defrauding
Plaintiff and its Tenant-Shareholders and inducing them to rely thereon in purchasing Units
in the Co-op.
87. The defendants purposefully and intentionally concealed from Plaintiff and its
and its Tenant-Shareholders the material construction defects in the Buildings.
88. The defendants' statements and representations and concealments alleged
above were material and Plaintiff and its Tenant-Shareholders believed them to be true and
reasonably relied on them in deciding to purchase the Units.
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believed to equal or exceed the purchase prices paid for their respective Units.
Tenant-Shareholders against the defendants jointly and severally in the amount of not less
than the purchase prices paid by the Tenant-Shareholders for their respective Units.
AS AND FOR AN EIGHTH CAUSE OF ACTION
reference.
92. The representations and omissions made, or failed to be disclosed, by the
defendants, and the material distributed by them relating to the Co-op, including the Purchase
Agreements, constitute advertising devices, assertions, representations or statements which
were untrue, deceptive and misleading in material respects and which were known by them
and/or in the exercise of reasonable care should have been known, to be untrue, deceptive
and/or misleading in a material respect, in violation of General Business Law 349 and
350.
93. The defendants knew and/or should have known that their conduct and
representations reasonably caused Plaintiff and its Tenant-Shareholders to conclude that the
Building and Units were free from material design and construction defects.
94. The defendants knew and/or should have known that their representations and
concealments were false, incomplete and misleading at the time they were made, and/or
failed to be disclosed, to Plaintiff and its Tenant-Shareholders.
95. Plaintiff and its Tenant-Shareholders reasonably believed the representations
of the defendants, and reasonably relying on the truth and completeness of those
representations, Plaintiffs Tenant-Shareholders entered into Purchase Agreements and
closed the purchases of their Units.
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believed to equal or exceed the purchase prices paid for their respective Units.
Tenant-Shareholders against the defendants jointly and severally in the amount of not less
than the purchase prices paid by the Tenant-Shareholders for their respective Units.
AS AND FOR A NINTH CAUSE OF ACTION
98. Plaintiff incorporates the allegations set forth in 11 1 through 97 above by

reference.
99. As members of the Co-op's Board of Directors, defendants Vincent L. Riso,
Raymond Riso and/or James Riso owed Plaintiff and its Tenant-Shareholders a fiduciary
duty to disclose and correct all defects in the construction and development of the Buildings
by the Sponsor, of which they were Principals, and to disclose and correct all material
omissions or misrepresentations of fact in the marketing of Units by Briarwood, with which
the Sponsor is affiliated and of which they are also principals.
100. Said defendants breached said fiduciary duty by failing to make disclosures
and corrections as they were required to do.
Tenant-Shareholders against the Sponsor jointly and severally in the amount of not less than
$2,000,000.
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AS AND FOR A TENTH CAUSE OF ACTION
103. Plaintiff incorporates the allegations set forth in 11 1 through 102 above by
reference.
104. Upon information and belief, on April 16,2010, the Sponsor and/or Principals
caused the Co-op to enter into a Management Agreement with Sponsor's affiliate Briarwood
to operate and manage the Co-op and its Buildings pursuant to the terms and conditions of
the Offering Plan.
105. Sponsor, Principals and/or Briarwood knew and intended that Plaintiff and its
Tenant-Shareholders would benefit from said Management Agreement.
106. Briarwood breached its contractual obligations to Plaintiff and its Tenant-
Shareholders in that the Buildings were improperly and inadequately maintained and/or
repaired, or was not maintained and repaired in a competent and workmanlike manner and in
accordance with the Management Agreement or as required by the Plan.
Tenant-Shareholders against Briarwood in the amount of not less than $2,000,000.
WHEREFORE, Plaintiff, on its own behalf and on behalf of its Tenant-Shareholders,
requests judgment against Defendants:
On the First Cause of Action

(a) that Plaintiff recover, on its own behalf and on behalf of its Tenant-
Shareholders, from the Sponsor and Principals,jointly and severally,
damages in an amount to be determined at trial, but believed to be in
sum amount of not less than $2,000,000;
On the Second Cause of Action
(b) that Plaintiff recover, on its own behalf and on behalf of its Tenant-
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On the Third Cause of Action
(c) that Plaintiff recover, on its own behalf and on behalf of its Tenant-
On the Fourth Cause of Action
(d) that Plaintiff recover, on its own behalf and on behalf of its Tenant-
Shareholders, from the Sponsor and Principals, jointly and severally,
On the Fifth Cause of Action
(e) that Plaintiff recover, on its own behalf and on behalf of its Tenant-
On the Sixth Cause of Action
(f) declaring that the Sponsor and Principals are jointly and severally
required to comply, and enjoining and directing the Sponsor and
Principals to comply, with their contractual and common law duties
to correct and remedy the various defects and conditions that pertain
in the Buildings in order to bring same into conformity with the plans
and specifications for the Building as required by the Plan, including
the examples particularly alleged above;
On the Seventh Cause of Action
(g) that Plaintiff recover, on its own behalf and on behalf of its Tenant-
Shareholders, from the defendants, jointly and severally, damages in
the amount of not less than the purchase prices paid by the Tenant-
Shareholders for their respective Units;
On the Eighth Cause of Action
(h) that Plaintiff recover, on its own behalf and on behalf of its Tenant-
Shareholders, from the defendants, jointly and severally, damages in
the amount of not less than the purchase prices paid by the Tenant-
Shareholders for their respective Units;
On the Ninth Cause of Action
(i) that Plaintiff recover, on its own behalf and on behalf of its Tenant-
Shareholders, from defendants Vincent L. Riso, Raymond Riso
and/or James Riso,jointly and severally, damages in an amount to be
determined at trial, but believed to be in sum amount of not less than
$2,000,000;
- 18 -
19 of 21
On the Tenth Cause of Action
G) that Plaintiff recover, on its own behalf and on behalf of its Tenant-
Shareholders, from Briarwood damages in an amount to be
determined at trial, but believed to be in sum amount of not less than
$2,000,000;
together with the costs and disbursements of this action, and such other, further and different
relief as is just and proper.
Dated: New York, New York

March 30, 2016
BORAH, GOLDSTEIN, ALTSCHULER,

NAHINS & GOIDEL, P.C.
By:-=----~----------
Jos . Farca
omeys for Plaintiff
7 Broadway, 6th Floor
New York, New York 10013
(212) 431-1300, Ext. 610
- 19 -
20 of 21
COUNTY OF BRONX
-------------------x Index No. - - - -/2016
GRANT A VENUE OWNERS CORPORATION, for
itself and on behalf of its Tenant-Shareholders,
Plaintiff,
- against - VERIFICATION
GRANT/BRIARWOOD, LLC, VINCENT L. RISO,

RAYMOND RISO, JAMES RISO, HOWARD
GOODMAN, BRIARWOOD PROPERTIES, INC. and
ASSOCIATES,
Defendants.
STATE OF NEW YORK }

}ss.:
COUNTY OF BRONX }
CHEVON DEPUTY, being duly sworn, deposes and says:
1. I am the president and a member of the board of directors of plaintiff GRANT
AVENUE OWNERS CORPORATION.
2. I have read the foregoing complaint and know the contents thereof; the same
are true to my own knowledge, except as to those matters alleged upon information and
belief; and as to those matters, I believe them to be true. The basis of such information and
belief are the books and records maintained by plaintiff, and its agents and employees.
3. This verification is made by me because plaintiff is corporation such that an
individual with knowledge must verify on its behalf.
CHEVONDPY .....
Sworn to before me this
.3.Q_ day of Marc 016
21 of 21

Complaint: Grant Avenue Owners Corp v. Grant Briarwood LLC

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Complaint: Grant Avenue Owners Corp v. Grant Briarwood LLC

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FILED: BRONX COUNTY CLERK 03/30/2016 04:06 PM INDEX NO.

SUPREME COURT OF THE STATE OF NEW YORK

TO THE ABOVE-NAMED DEFENDANT(S):

Dated: New York, New York

- against - VERIFIED COMPLAINT

GRANT/BRIARWOOD, LLC, VINCENT L. RISO,

tenant-shareholders, by its attorneys BORAH, GOLDSTEIN, ALTSCHULER, NAHINS & GOIDEL,

P .C., as and for its complaint alleges as follows:

1. Plaintiff GRANT A VENUE OWNERS CORPORATION ("Plaintiff' or "Co-op"), a

the Bronx County Tax Map) (the "Property").

2. Defendant GRANT/BRIARWOOD, LLC (the "Sponsor") is, upon information

and was at all relevant times the Sponsor of the Co-op.

3. Defendants VINCENT L. Riso, RAYMOND Riso, JAMES RISO AND HOWARD

4. Defendant BRIARWOOD PROPERTIES, INC. ("Briarwood") is, upon information

Property and one of its selling agents for the Co-op.

agents for the Co-op.

B. The Property and the Offering Plan

6. In June 2007, the Sponsor entered into a number of agreements including

(2) new ten-story residential buildings with parking at the Property.

"Buildings"), both of which Buildings are located upon the Property.

jointly and severally certified the Offering Plan.

Co-op were entered into by the Sponsor on or about January 5, 2009.

Co-op Buildings were issued on April 1, 2010.

conveyed title to the Property to the Co-op.

the Offering Plan.

Tenant-Shareholder in the Co-op pursuant to a Purchase Agreement with the Sponsor

occurred on or about May 10, 2010.

the first meeting of Tenant-Shareholders.

holding all three of the positions on the Board.

24. The Plan provides, in part (at page 159), as follows:

2. All representations under the Offering Plan, all obligations

6. The Sponsor will diligently, expeditiously and at its own cost,

Sponsor will defend any suits or proceedings arising out of

incorporated the terms and conditions of the Plan, providing that:

. . . In the event of any inconsistency or conflict between the

with the New York City Department of Buildings.

appliances, fixtures or equipment if the defects were due to improper workmanship or

and representations made in the Plan were true.

or contain any promises or representations beyond reasonable expectation.

D. The Buildings, Residential Units And Common

36. Subsequent to the commencement of occupancy by purchasers of Units in the

Areas were discovered.

37. These defects include, but are not limited to:

40. However, as a result of the original defective construction of the Buildings

requirements persisted and worsened.

AS AND FOR A FIRST CAUSE OF ACTION

accordance with good design and construction standards and practices.

terms and conditions of the Plan were incorporated therein.

New York City Department of Buildings.

47. By reason of the. foregoing, Plaintiff and its Tenant-Shareholders have

believed to be in excess of $2,000,000.

Tenant-Shareholders under the Plan.

amount of not less than $2,000,000.

AS AND FOR A SECOND CAUSE OF ACTION

the construction or rehabilitation of the Buildings.

53. The Sponsor failed to correct such defects.

believed to be in excess of $2,000,000.

Tenant-Shareholders under the Plan.

jointly and severally in the amount of not less than $2,000,000.

AS AND FOR A THIRD CAUSE OF ACTION

accordance with good design and construction standards and practices.

inadequately constructed or developed and completed in a competent and workmanlike

60. By reason of the foregoing, Plaintiff and its Tenant-Shareholders have

believed to be in excess of $2,000,000.