One of the most common—and costly—mistakes I see in business disputes is the confusion between a loan and an equity investment. While the distinction may seem obvious in theory, in practice parties often blur the line, leading to litigation when expectations are not met. A recent case illustrates just how dangerous that confusion can be. In Gritsay v. Brooklyn Comprehensive Center (Kings County Sup. Court May 7, 2026), the plaintiff alleged that she paid approximately $750,000 over time in…