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C.C.M.S. v. Oxford Realty & Holdings LLC

Rejection of Sublease by West 27 Directors, Not Oxford's Acts, Led to C.C.M.S. Loss of Bid

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MEMORANDUM AND ORDER Plaintiff C.C.M.S. brought suit against defendants Oxford Realty & Holdings, LLC, (“Oxford Realty”) and West 27th Street Realty, Inc. (“West 27th Realty”) and its board members Marc Paturet, Joseph Grill, Maxime Touton, F. Michael Conte, Nigel Shamash,1 and other similarly situated board members, alleging that their refusal to sublet an office space located on the 8th floor of 129 West 27th Street in New York, N.Y. (the “Premises”) was the result of race-based discrimination in violation of 42 U.S.C. §§1981 and 1982. Defendants Oxford Realty and its agent, Shamash (together, the “Oxford Defendants”) moved to dismiss C.C.M.S.’s claims as against them. In response to the Oxford Defendant’s motion, C.C.M.S. moved to amend its complaint. For the following reasons, the Oxford Defendants’ motion to dismiss is granted and C.C.M.S.’s motion to amend is denied. BACKGROUND 1. Factual Allegations C.C.M.S. is a not-for-profit organization based in New York, which provides social services to its patients to address mental illness and substance and alcohol abuse. Proposed Amended Complaint, ECF No. 37, Ex. A (“PAC”) 4.2 West 27th Realty owns the building located at 129 West 27th Street in New York City, which is operated as a commercial cooperative. Oxford Realty is a shareholder of West 27th Realty, owning the shares allocated to the Premises. Id.

6-7. In August of 2019, C.C.M.S. indicated to the Oxford Defendants through its real estate broker, Bob King, that it was interested in subleasing the Premises. Id. 22. In the same paragraph, it is alleged on information and belief that Shamash told King that he had the votes of the board of West 27th Realty (the “Board”) to approve the sublease. Id. In November of 2019, Oxford Realty’s lawyer, Etan Harris, presented a written proposal to C.C.M.S. to sublease the Premises, and C.C.S.M.’s lawyer, Diana Lee, began negotiations with Harris over the planned use of the Premises stated in the sublease. Id.

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