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New York Supreme Court Issues Preliminary Injunction Halting Another UCC Foreclosure

Client memorandum | August 6, 2020

On August 3, 2020, the New York County Supreme Court issued a preliminary injunction in Shelbourne BRF LLC v. SR 677 BWAY LLC, Index No. 652971/2020 (N.Y. Cnty. Sup. Ct.), enjoining a foreclosure sale under the Uniform Commercial Code (“UCC”). The Court found that plaintiff borrowers demonstrated a likelihood of success on the merits of their claim that the proposed UCC sale was commercially unreasonable and that plaintiffs would be irreparably injured by the loss of their LLC interests. This marks the second time since June 2020 that a New York County Supreme Court judge has enjoined a UCC foreclosure sale from proceeding in the wake of the COVID-19 pandemic.

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