A dispute between the County of Westchester and Standard Amusements, LLC regarding their responsibilities under the Second Amended and Restated Playland Management Agreement (PMA) has been resolved by an arbitration panel. The panel, consisting of Honorable Jonathan Lippman (Chair), Honorable Shira A. Scheindlin, and Honorable Anthony J. Carpinello, ruled in favor of the County’s motion for partial summary judgment.
The issue at hand was whether the PMA allowed the County to rectify its failure to complete 70% of capital projects by April 30, 2024. The panel concluded that the PMA requires Standard to provide notice and a right to cure before declaring a default or breach of contract.
Standard Amusements had selected as a partner by the County on August 10, 2015, to manage Playland Park in Rye, New York. The operative PMA was executed on July 21, 2021. Section 6-a(i) of the PMA permits Standard to terminate the agreement if the County fails to meet the 70% completion threshold for capital projects by April 30, 2024.
On January 21, 2025, Standard issued a termination notice based on this provision. However, both parties sought partial summary judgment on whether Section 6-a(i) provided the County with a right to cure its failure.
The County argued that its failure should be considered an “Event of Default” under Section 21(B)(i), which allows for notice and an opportunity to remedy within thirty days. The County maintained that this interpretation aligns with other sections of the PMA.
Standard contended that Section 6-a(i) did not grant such a right because it explicitly allows termination without mentioning a cure period. They also argued that missing a deadline is incurable as it is a historical fact.
The panel sided with the County’s interpretation, stating that failure to meet the threshold is subject to notice-and-cure provisions outlined in Sections 21(B)(i), making Standard’s termination notice invalid.
In conclusion, “the Panel grants the County’s motion for partial summary judgment and therefore finds Standard’s notice of termination dated January 21, 2025, to be invalid and void for failing to acknowledge the County’s right to cure.”
