Kasowitz Scores Another Victory for SL Green, As Second Circuit Affirms Turnover Relief Against HNA Group in Partial Satisfaction of $185 Million Judgment

Kasowitz Benson Torres, on behalf of 245 Park Member LLC, an affiliate of SL Green Realty, New York City’s largest owner of office real estate, secured a complete victory against HNA Group (International) Company Limited, part of Chinese conglomerate HNA Group, in the U.S. Court of Appeals for the Second Circuit.  The Second Circuit affirmed an order of Judge John G. Koeltl of the U.S. District Court for the Southern District of New York granting SL Green’s motion for a direct turnover of HNA Group’s 100% membership interest in a Delaware limited liability company in partial satisfaction of a $185 million judgment.  
 
In its unanimous decision issued on April 8, 2024, the Second Circuit, agreeing with SL Green, confirmed that New York judgment enforcement law applied to the turnover motion and permitted a turnover of HNA Group’s membership interest directly to SL Green, in light of the fact that HNA Group had “attempted to frustrate and obstruct 245 Park’s efforts to collect on the Judgment” and that the membership interest was difficult to value. 
 
The $185 million judgment arises from a May 5, 2022 award that Kasowitz secured for SL Green at a JAMS arbitration.  On July 25, 2022, Judge Koeltl confirmed the $185 million arbitration award and denied HNA’s motion to vacate it.  Judge Koeltl then granted Kasowitz’s motion for the turnover on May 19, 2023.   
 
The Kasowitz team representing 245 Park Member LLC is led by partners Mark P. Ressler and Paul M. O’Connor III, and includes Special Counsel Henry Brownstein and associates Alexander Lee and Gabriel Santos Neves.  Mr. Brownstein argued the appeal in the Second Circuit.