Court dismisses unjust enrichment claim in nursing home sale dispute

In a recent ruling, the Supreme Court, Kings County, under Judge Larry Martin, initially denied a motion for summary judgment in a case involving Benjamin Landa and F. James McGuire over a disputed nursing home business transaction. This decision was later overturned by the Appellate Division, leading to the dismissal of Landa’s claims of unjust enrichment.

Landa had engaged in negotiations to facilitate the sale of McGuire’s nursing home business and affiliated pharmacy, culminating in a memorandum of understanding. However, the deal for the nursing home business never materialized despite the sale of the pharmacy to PharMerica Corporation. Landa subsequently filed a lawsuit claiming unjust enrichment, alleging he was instrumental in finding a buyer for the pharmacy based on the defendants’ assurances of a transaction.

The case’s legal analysis hinged on the application of General Obligations Law § 5-701(a)(10), which requires agreements for compensation in business negotiations to be in writing. The court determined that there was no such written agreement between Landa and the defendants. Additionally, the court found that Landa’s preexisting relationship with PharMerica and his vested interest in the nursing home business undermined his claims. The court ruled that Landa’s actions were not sufficiently based on the defendants’ assurances, thus negating his claims of equitable estoppel.