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Current Developments in the Commercial Divisions of the
New York State Courts
Posted: April 26, 2015

Court Excludes Parol Evidence

On April 16, 2015, the First Department issued a decision in Town New Development Sales & Marketing LLC v. Price, 2015 NY Slip Op. 03262, affirming the dismissal of a counterclaim based on parol evidence varying a written agreement.

In Town New Development Sales & Marketing, the trial court granted the plaintiff’s cross motion to dismiss the defendant’s counterclaim for breach of contract. The First Department affirmed, explaining that “[s]ince the parties have a written, fully integrated agreement with a merger clause that covers defendant’s compensation in detail, defendant cannot introduce parol evidence to prove a prior agreement with regard to his compensation. Accordingly, the motion court properly dismissed the first counterclaim and the proposed amendment to that counterclaim. It also follows that defendant’s motion to compel discovery in support of the first counterclaim was properly denied.” (Internal quotations and citations omitted).

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