Russo PLLC’s victory before the Supreme Court, New York County, which granted plaintiff’s motion for summary judgment on its cause of action for violation of Business Corporation Law Section 720 (a)(1)(B) as against defendant Nina Zajic and its claim for unjust enrichment as against defendant David Kay, was unanimously affirmed on appeal. The Appellate Division, First Department upheld the motion court’s application of the collateral estoppel doctrine to the issue of Little Rest Twelve’s ownership, which had been before the bankruptcy court. The Court further held that plaintiff made a prima facie showing that millions of dollars’ worth of self-interested and otherwise wasteful transactions were effected by Zajic for her benefit and for the benefit of David Kay and Joseph Kay, determining that defendants’ “broad and unsubstantiated assertions” regarding the good faith and fairness of the transactions at issue were insufficient to raise an issue of fact as to the BCL Section 720(a)(1)(B) claim. Finally, the Court ruled that defendants did not submit evidence to support their assertion that the expenditures at the center of plaintiff’s unjust enrichment claim, including a luxury car lease and a Manhattan rental apartment, were reasonable or fair under the circumstances. To see the decision, click here.