ZAVŌ Restaurant & Lounge

Commercial Litigation

Case:

After ZAVŌ Restaurant & Lounge stopped paying rent on its 15,000-square-foot space at 1011 Third Avenue in March 2020, landlord Olshan Properties sued to collect at least $795,000 from owner Ilya Zavolunov and his father Michael, who personally guaranteed ZAVŌ’s 15-year lease.

Result:

ZAVŌ’s lawyer, Leo Jacobs, argued that the default occurred only after the three-day grace period ended, which happened to be days after the city law went into effect. (Though passed in May 2020, the law was retroactive to March 7 and later extended through June 30, 2021.) The court sided with Jacobs and ruled in favor of the tenants in April, but Olshan filed an appeal. A state appellate court heard the case last week, and now the parties await their decision.


Media coverage:
TheRealDeal
Queens Daily Eagle

Developer Tomer Dafna hit with involuntary bankruptcy petition

Commercial Litigation

Case:

Two of Dafna’s creditors filed a petition for his involuntary Chapter 7 bankruptcy last week, citing $1.3 million in claims, court records show. But that number could balloon to more than $20 million if the parties behind numerous lawsuits and outstanding judgments against Dafna become creditors. The case against Dafna and his co-defendants is ongoing. Each man faces a $1 million fine and up to 30 years in prison if convicted.