New York Court of Appeals
111 W. 57th Inv. LLC v. 111 W57 Mezz Inv. LLC
May 28, 20262026 NY Slip Op 03376
Summary
The Court of Appeals held that a contractual grant of sole discretion does not categorically eliminate the implied covenant of good faith and fair dealing. The complaint plausibly alleged that the lender used its assignment discretion as part of a scheme to strip the plaintiff of the benefit of its equity investment, so the implied-covenant claim was reinstated and remitted for further proceedings. The Court otherwise affirmed dismissal of the tortious-interference claims as insufficiently pleaded.