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Posts Categorized: Contracts

Posted: August 10, 2017

Lost Profits Found to be Recoverable as General, Not Consequential, Damages

On August 3, 2017, Justice Kornreich of the New York County Commercial Division issued a decision in AGE Group, Ltd. v. Martha Stewart Living Omnimedia, Inc., 2017 NY Slip Op 31639(U), holding that lost profits were recoverable as general rather than consequential damages, explaining: MSLO also wrongly contends that this case may be dismissed if… Read more »

Posted: August 9, 2017

Insured Not Entitled to Indemnification Because It Settled Claims Without Insurer’s Permission

On August 8, 2017, the First Department issued a decision in Bovis Lend Lease (LMB), Inc. v. Arch Insurance Co., 2017 NY Slip Op. 06049, holding that an insured forfeited its right to indemnification by entering into a settlement without its insurer’s permission, explaining: Under paragraph 4 of the parties’ Companion Agreement, Bovis was required… Read more »

Posted: August 8, 2017

Merger Clause Bars Fraud Claim

On July 31, 2017, Justice Sherwood of the New York County Commercial Division issued a decision in Representaciones E Investigaciones Medicas, S.A. De C.V. v. Abdala, 2017 NY Slip Op. 31619(U), dismissing a fraud claim relating to the acquisition of a pharmaceutical company based on a contract’s merger clause. In Representaciones E Investigaciones Medicas, the… Read more »

Posted: August 5, 2017

Property Owner Not Liable to Subcontractor for General Contractor’s Obligations

On July 26, 2017, Justice Emerson of the Suffolk County Commercial Division issued a decision in County Wide Flooring, Corp. v. Town of Huntington, 2017 NY Slip Op. 50967(U), holding that a property owner was not liable for a general contractor’s contractual obligations to a subcontractor, explaining: When, as here, there is an express contract… Read more »

Posted: August 3, 2017

Court Enforces Warranty Waiver, Dismissing Claim

On August 2, 2017, the Second Department issued a decision in Joka Industries, Inc. v. Doosan Infracore America Corp., 2017 NY Slip Op. 05941, affirming the dismissal of a breach of warranty claim based on a contractual waiver, explaining: [T]he defendants demonstrated their prima facie entitlement to judgment as a matter of law dismissing the… Read more »

Posted: July 27, 2017

Actual Notice Insufficient to Meet Contract’s Strict Contractual Notice Requirement

On July 27, 2017, the Third Department issued a decision in Ridley Electric Co., Inc. v. Dormitory Authority of The State of New York, 2017 NY Slip Op. 05907, holding that actual notice was insufficient to meet a contract’s strict notice requirements, explaining: [D]efendant submitted the affidavits and deposition testimony of two managerial employees familiar… Read more »

Posted: July 23, 2017

Plaintiff Awarded Fees Based on Unmistakably Clear Language in Contract

On July 14, 2017, Justice Kornreich of the New York County Commercial Division issued a decision in SASOF TR-43 Aviation Ireland Ltd. v. Eastok Avia FZC, Yanair Ltd., 2017 NY Slip Op. 31514(U), awarding a prevailing party attorney’s fees under a contract, explaining: Plaintiffs request an award of reasonable attorneys’ fees under the Agreements. When… Read more »

Posted: July 21, 2017

Alleged Faulty Notice of Lease Renewal States Breach of Implied Covenant Claim

On July 13, 2017, Justice Scarpulla of the New York County Commercial Division issued a decision in Foscarini, Inc. v. Greenestreet Leasehold Partnership, 2017 NY Slip Op. 31493(U), holding that allegations that a defendant gave a faulty notice of lease renewal intending to prevent the plaintiff from finding another tenant but without intending actually to… Read more »

Posted: July 4, 2017

Court Upholds Implied Covenant Claim Based on Frustration of Plaintiff’s Efforts to Recover Funds

On June 22, 2017, the First Department issued a decision in Tillage Commodities Fund, L.P. v. SS&C Tech., Inc., 2017 NY Slip Op. 05155, upholding a claim for breach of the implied covenant of good faith and fair dealing based on a fund administrator’s alleged frustration of the plaintiff’s efforts to recover money of which… Read more »