Kasowitz, on behalf of Calverton Aviation & Technology, Files Lawsuit Alleging Town of Riverhead Engaged in Scheme to Evade Contractual Obligations to Sell EPCAL and Allow its Development
On January 8, 2024, Kasowitz Benson Torres, on behalf of Calverton Aviation & Technology (CAT), has filed a lawsuit in Suffolk County Supreme Court, Riverhead, NY, against the Town of Riverhead and certain of its agencies.
The complaint alleges that Riverhead, its Community Development Agency (CDA), and the Riverhead Industrial Development Agency (RIDA), engaged in a scheme to evade Riverhead’s contractual obligation under a purchase agreement to sell 1,643 acres at the Enterprise Park at Calverton (EPCAL) property in Calverton to CAT.
As alleged in the complaint, after fraudulently inducing CAT to allow RIDA to determine CAT’s continued financial qualification to develop EPCAL, Riverhead and CDA improperly influenced RIDA to falsely find that CAT lacked such qualifications -- notwithstanding CAT’s offer to pay the $40 million purchaser price in cash.
CAT is seeking specific performance of its contractual right to purchase and develop the EPCAL property and a determination that Riverhead’s actions, “including its lies to CAT regarding its intention to perform its contractual obligations, its improper interference with RIDA, and its pretextual basis for declaring the Purchase Agreement null and void – negate its purported termination.” CAT also demands that Riverhead proceed to closing with CAT on its promised sale of EPCAL and pay monetary damages to CAT.
The Kasowitz Benson Torres team representing Calverton Aviation & Technology is led by partners Marc E. Kasowitz, Ronald R. Rossi and Thomas Kelly, and includes associates Dexin Deng and Christopher Goetz.