On November 28, 2023, the First Department issued a decision in Cassaforte Ltd. v. Pourtavoosi, 2023 NY Slip Op. 06080, holding that plaintiffs could not assert a claim regarding an unauthorized transaction when they benefitted from it, explaining:
Sharestates did establish a defense of equitable estoppel based on documentary evidence, namely U.S. Department of Housing and Urban Development Settlement Statements submitted by the XYZ plaintiffs after closing, which show that the proceeds of the loans made by Sharestates were actually distributed to and received by the XYZ plaintiffs. Having received the benefits of the loans, the XYZ plaintiffs are estopped from contesting the validity of the mortgages, because otherwise they would obtain an unconscientious advantage. Further, the XYZ plaintiffs have not offered to return any part of the loan proceeds; thus they are deemed to have assented to the transactions and are equitably estopped from impeaching them.
(Internal quotations and citations omitted).