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Current Developments in the Commercial Divisions of the
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Posted: January 11, 2017

Court May Grant Any Relief, Demanded or not, Within its Jurisdiction Appropriate to the Proof

On January 10, 2017, the First Department issued a decision in A&F Hamilton Heights Cluster, Inc. v. Urban Green Heights, Inc., 2017 NY Slip Op. 00135, affirming an order requiring a party to repay another party funds used to pay a law firm, explaining:

The motion court did not award sanctions pursuant to 22 NYCRR 130-1.1(c)(3), but rather granted that portion of the motion to compel the return of all funds paid from HHCA’s bank accounts to Tendy. The traditional judicial equity power in NY Constitution, article VI, ยง 7 is implemented by CPLR 3017(a), which prescribes that the court may grant any type of relief within its jurisdiction appropriate to the proof whether or not demanded, imposing such terms as may be just. The order here was not unjust, in that Fendt caused HHCA to make payments to the law firm that commenced this litigation, although he was not authorized to do so.

(Internal quotations and citations omitted) (emphasis added).

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