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HNRK Secures Summary Judgment On Behalf Of MTA In Michael Jordan Restaurant Litigation


HNRK secured a complete victory in a claim brought by a Grand Central Terminal restaurant owner against the MTA and the Metro North Railroad that sought compensation for a decline in its business allegedly resulting from a nearby construction project. The owner, Penny Port, LLC, operated Michael Jordan’s the Steakhouse, from 1998 until the expiration of its lease with MTA and Metro-North at the end of 2018. According to Penny Port, it suffered a decline in its restaurant and bar sales when Metro-North, the owner of GCT, undertook a leak remediation projection around the Terminal, including the old Taxi Stand Area which was adjacent to the space occupied by Michael Jordan’s. Penny Port argued that the disruption from the construction and an increase in homeless people harmed its business – points disputed by the MTA and railroad. Ultimately, State Supreme Court Justice Joel Cohen, agreeing with the MTA and Metro-North, found that Penny Port’s lease explicitly prohibited claims for lost profits resulting from construction work. Justice Cohen also rejected Penny Port’s claim that Metro-North’s performance of the project was performed in an unreasonable manner.

Law360's write up of the decision can be found here.

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