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Commercial Division Blog

Current Developments in the Commercial Divisions of the
New York State Courts

Posts Categorized: Commercial

Posted: February 26, 2017

Discord Between LLC Members so Severe That it Justified LLC’s Dissolution

On February 16, 2017, Justice Dufficy of the Queens County Commercial Division issued a decision in Matter of 47th Rd. LLC, 2017 NY Slip Op. 50196(U), holding that the discord between an LLC’s members was so severe that it justified the LLC’s dissolution, explaining: In determining applications for a judicial dissolution of a limited liability… Read more »

Posted: February 25, 2017

Insurer Adequately Pleads Reliance on RMBS Issuer’s Representations

On December 19, 2016, Justice Friedman of the New York County Commercial Division issued a decision in Ambac Assurance Corp. v. Countrywide Home Loans, Inc., 2016 NY Slip Op. 51864(U), holding that an insurer had adequately pled reliance on an RMBS issuer’s misrepresentations, explaining: The general standards for pleading and proof of justifiable reliance have… Read more »

Posted: February 24, 2017

Default Judgment Denied For Failure to Allege or Provide Facts Showing Liability

On February 10, 2017, Justice Kornreich of the New York County Commercial Division issued a decision in BMG Rights Management (US) LLC v. Radar Pictures, Inc., 2017 NY Slip Op. 30290(U), denying without prejudice a motion for default judgment for failure to allege or provide facts showing liability, explaining: CPLR 3215(a) authorizes the court to… Read more »

Posted: February 23, 2017

Party Waived Right to Seek Objected-To Discovery By Not Making Timely Motion to Compel

On February 14, 2017, Justice Oing of the New York County Commercial Division issued a decision in New York University v. International Brain Research Foundation, Inc., 2017 NY Slip Op. 30291(U), holding that a party waived its right to seek discovery by not making a timely motion to compel its production, explaining: Defendant now moves… Read more »

Posted: February 22, 2017

Court Erred in Vacating Undertaking Before Determining Damages Suffered From TRO

On February 16, 2017, the First Department issued a decision in Canales v. Finger, 2017 NY Slip Op. 01266, holding that it was error to vacate an undertaking before determining whether the defendants were damaged by entry of a temporary restraining order and ordering that the undertaking be posted again, explaining: [T]he court erred in… Read more »

Posted: February 20, 2017

First-in-Time Analysis Under CPLR 3211(a)(4) Based on Filing of Summons With Notice

On January 12, 2017, Justice Rosenbaum of the Monroe County Commercial Division issued a decision in Quatro Consulting Group, LLC v. Buffalo Hotel Supply Co., Inc., 2017 NY Slip Op. 27032, holding that an action commenced by filing of a summons with notice was first-in-time for purposes of CPLR 3211(a)(4) even though the complaint in… Read more »

Posted: February 19, 2017

Dismissal of Fraudulent Misrepresentation Claim Based on Respondeat Superior Theory Affirmed

On February 14, 2017, the First Department issued a decision in VFP Investments I LLC v. Foot Locker, Inc., 2017 NY Slip Op. 01148, affirming the dismissal of a fraudulent misrepresentation claim based on the theory of respondeat superior, explaining: The fraudulent misrepresentation claim based on the theory of respondeat superior fails to state a… Read more »

Posted: February 18, 2017

Court Rejects Claim Based on Term Sheet for Later-Memorialized Agremeent

On February 6, 2017, Justice Singh of the New York County Commercial Division issued a decision in Pate v. BNY Mellon-Alcentra Mezzanine III, L.P., 2017 NY Slip Op. 30256(U), rejecting a breach of contract claim based on the terms sheet for a later-memorialized agreement, explaining: The amended complaint alleges that: 1) the Term Sheet is… Read more »

Posted: February 17, 2017

Guarantee of Borrower’s Obligations Under Agreement Not Document Amenable to CPLR 3213 Action

On February 14, 2017, the First Department issued a decision in PDL Biopharma, Inc. v. Wohlstadter, 2017 NY Slip Op. 01151, holding that a guarantee of a borrower’s contractual obligations was not an instrument amenable to summary judgment in lieu of complaint under CPLR 3213, explaining: The prototypical example of an instrument within the ambit… Read more »