On October 7, 2025, the First Department issued a decision in Ali Baba Hotel Corp. v. Prose, 2025 NY Slip Op. 05451, interpreting the term “affiliate” to extend the benefit of a contract to a non-signatory, explaining:
Supreme Court correctly granted plaintiffs summary judgment on their breach of contract claim. The surrender agreement is unambiguous, and we give the terms of that agreement their ordinary meaning. Prose’s argument that the Marcel Hotel is not “affiliated” with Ali Baba is unavailing. Plaintiffs established that the Marcel Hotel and Ali Baba are affiliates by virtue of overlapping ownership and common control. Prose failed to raise a triable issue of fact as to whether the Marcel Hotel and Ali Baba shared ownership and common control.
(Internal citations omitted).
