A dispute between governing boards at a Times Square mixed-use property highlights the role of Chapter 11 in resolving real estate litigation.

The residential board of the Cassa Condominium has moved to dismiss a Chapter 11 case filed by the condominium board, arguing the filing was made in bad faith and that the issues are better addressed in state court. The condominium board maintains that bankruptcy provides a centralized forum to address multiple ongoing disputes and stabilize operations.

In a recent Law360 article, Co-Chair of the Tarter Krinsky & Drogin Bankruptcy & Corporate Restructuring Practice Scott Markowitz, who represents the condominium board alongside Rocco Cavaliere, Vice Chair of the Practice, noted that such filings are relatively uncommon in New York. He explained that the Chapter 11 process offers “a forum to hopefully resolve everything” and position the condominium to “operate as it should” going forward.

The motion to dismiss is currently pending before the U.S. Bankruptcy Court for the Southern District of New York.

Read the Law360 article. (This article is behind a paywall.)

NYC Condo Board Ch. 11 Should Be Tossed, Rival Group Says - Law360 Bankruptcy Authority