FIELDSTONE CAPITAL, INC. plf-ap, FOXHURST REALTY, INC. PLAINTIFFS, v. LOEB PARTNERS REALTY def-res, LH EAGLE RIDGE ASSOCIATES LLC def, L 63 PARTNERS, L.P. Nominal def

9815. FIELDSTONE CAPITAL, INC. plf-ap, FOXHURST REALTY, INC. PLAINTIFFS, v. LOEB PARTNERS REALTY def-res, LH EAGLE RIDGE ASSOCIATES LLC def, L 63 PARTNERS, L.P. Nominal def — Sullivan & Cromwell LLP, New York (David B. Tulchin of counsel), for ap — Quinn Emanuel Urquhart & Sullivan, LLP, New York (Adam M. Abensohn of counsel), for res — Order, Supreme Court, New York County (O. Peter Sherwood, J.), entered November 29, 2012, which denied plaintiffsappellants’ motion for a preliminary injunction, unanimously reversed, on the law, with costs, and the motion granted to the extent of ordering that defendants-respondents are enjoined from continuing to act or purporting to act as plaintiffs-appellants’ agent and property manager for the listed properties, and directing that the accounts in dispute be frozen and their contents held in escrow pending determination of this action.

In the 1990s, the parties entered into written contracts pursuant to which defendants agreed to act as agent and property manager with respect to certain properties owned by plaintiffs. In 2011, plaintiffs notified defendants that their agency was being terminated. Defendants took the position that the termination was ineffective given their residuary interests in the properties. Plaintiffs commenced this action seeking, among other things, an order enjoining defendants from continuing to purport to act as an agent for plaintiffs and requiring defendants to relinquish control over relevant bank and investment accounts. Several months later, plaintiffs moved for a preliminary injunction seeking the same relief.