TODAY'S PAPER
72° Good Evening
72° Good Evening
Long IslandSuffolk

Court: D'Addario not obliged to pay interest

The state's highest court Monday ruled that Long Island guitar-string maker D'Addario & Co. is not obliged to pay $227,000 in interest for reneging on a 2006 real estate deal.

The New York State Court of Appeals upheld a lower court decision, finding the East Farmingdale company's initial sales agreement with Embassy Industries Inc., a Hauppauge-based heating equipment business, does not require it to pay 9 percent in statutory interest for backing out of the deal.

The dispute arose after D'Addario broke off an agreement to buy a property in Farmingdale from Embassy for $6.5 million over concerns of groundwater contamination.

Embassy refused to release D'Addario's $650,000 down payment, saying it had unlawfully defaulted on the deal. D'Addario sued, and a lower court found Embassy was entitled to keep the down payment -- plus $227,000 in interest.

An appeals court agreed that Embassy should keep the $650,000, but said D'Addario did not have to pay the interest under the terms of the sales agreement. The court of appeals upheld that ruling.

Comments

We're revamping our Comments section. Learn more and share your input.

Latest Long Island News