Reid & Wise Secures Major Summary Judgment Victory for EB-5 Investor in Buffalo Landmark Property Dispute
Reid & Wise secured summary judgment for the investor and lender in a property dispute over a downtown Buffalo landmark before the Supreme Court of the State of New York, Erie County. The case arose from a hotel redevelopment project financed through the EB-5 Immigrant Investor Program; the litigation ultimately spanned six years and involved multiple parties.
The Court's Ruling
The court voided the 2020 deed purporting to transfer the former AM&A department store at 377 Main Street from judgment debtor Landco H&L to 377 Main Realty, declared BP3 Capital's mortgage and related liens invalid, and restored title to Landco H&L. Following oral argument on seven cross-motions, the court entered Justice John B. Licata's Decision and Order, dated May 25, 2026, entered on May 26, 2026.
The court found that Ms. L, who signed the 2020 deed, had sold all of her shares in Landco in 2015 and had not rescinded the agreement in writing as required. She therefore lacked authority to convey the building on Landco's behalf in 2020. The court further found that 377 Main Realty's principal knew of the share-ownership dispute and changed the proposed transaction from a stock purchase to an asset purchase, defeating its claim to bona fide purchaser protection. The court also found that BP3 Capital conducted no independent inquiry and was not a bona fide mortgagee. The court stated that "[t]his Decision and Order is intended to finally resolve this matter."
Background: A $10 Million Judgment and a Transferred Building
Ms. W invested $500,000 through the EB-5 program in the 377 Main Street hotel redevelopment project and, at the project sponsors' request, made an additional $6.5 million loan in September 2017. After the project stalled, Reid & Wise filed suit on her behalf in the U.S. District Court for the Eastern District of New York and obtained judgments totaling more than $10 million in 2023 and 2024; the judgments were later docketed in Erie County.
Enforcement, however, faced a central obstacle: the building had been conveyed to 377 Main Realty on January 30, 2020, and was encumbered by a mortgage claimed by BP3 Capital; Landco, 377 Main Realty, BP3 Capital, and others had already been litigating for years over title to the building and the mortgage. Reid & Wise then moved to intervene on Ms. W's behalf as Intervenor-Plaintiff in the state-court litigation. The team took key depositions and reconstructed the chain of transactions, one transaction at a time.
Why the Ruling Matters
The ruling removes a major obstacle to enforcing Ms. W's judgments totaling more than $10 million, docketed in Erie County, against the approximately 375,000-square-foot landmark. Reid & Wise will continue to represent her in the ensuing proceedings.
More generally, a money judgment is only as valuable as the assets available to satisfy it. When a debtor's principal asset has been conveyed to a third party and encumbered by new liens, the judgment creditor may first need to litigate the validity of those transactions before enforcement can proceed. Under New York law, a deed signed by someone without authority to act for the owner may be declared void, and a purchaser or mortgagee that takes an interest with knowledge of competing claims — or without reasonable inquiry — may lose the protections afforded to bona fide purchasers and encumbrancers. This decision illustrates how a judgment creditor can clear such obstacles through intervention, targeted discovery, and dispositive motion practice.
About Reid & Wise
The Reid & Wise team included Matthew Sava, Shiyong Ye, and Siyao Lin.
Reid & Wise LLP represents investors and lenders in complex commercial litigation and investment dispute resolution matters across the United States, with extensive experience in EB-5 investment litigation on behalf of immigrant investors — from obtaining money judgments in federal court to litigating title disputes and judgment enforcement proceedings in state court.
Case Information
Landco H&L, Inc. v. 377 Main Realty, Inc., Li Li, and BP3 Capital, LLC, Index No. 802087/2020, Supreme Court of the State of New York, County of Erie (Hon. John B. Licata, J.S.C.)
Cao v. Landco H&L Inc. et al., No. 1:20-cv-01180 (E.D.N.Y.)
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