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- Court Finds Trial Issues In Aircraft Lease Dispute That Include Whether Lessor Prevented Lessee From Returning Engine On July 15, 2026, in Magnetic Parts Trading Limited v National Air Cargo Group, Inc., Index No. 653266/2020, Justice Robert R. Reed of the New York County Commercial Division denied plaintiff's motion for partial summary judgment on its breach of lease claim, in part because an issue of fact existed under the doctrine of prevention.
- NBC Calls On Brad Simon For Expert Legal Commentary On Luigi Mangione Prosecutions Schlam Stone partner and former federal prosecutor Brad Simon appeared on the WNBC Evening News on August 12 to discuss the possible double jeopardy implications of Luigi Mangione’s upcoming federal and state trials for the alleged murder of UnitedHealthcare CEO Brian Thompson. Brad explained that the New York double jeopardy statute is sufficiently permissive to enable Mangione to make a viable double jeopardy argument for dismissal if the federal case proceeds first.
- Court Permits Nonparty Subpoenas Seeking Endorsement Agreements With Professional Golfer In Commission Dispute On July 10, 2026, in Schaeffer v GSE Worldwide, Index No. 652676/2021, Justice Robert R. Reed of the New York County Commercial Division denied the defendants’ motion to quash fourteen nonparty subpoenas.
- Court Holds Initial Lender’s Assignee Has Standing To Substitute As Plaintiff In Action For Breach Of Guaranties On July 23, 2026, in CPIF Lending, LLC v Segal, Index No. 652592/2025, Justice Robert R. Reed of the New York County Commercial Division held that a nonparty assignee had standing to move to substitute as plaintiff in an action for breach of guaranty.
- Erik Groothuis quoted in The Guardian about press access during the Luigi Mangione trial Schlam Stone partner Erik Groothuis was quoted in an article in The Guardian, titled “Press access spat adds to fears of circus around Luigi Mangione murder trial.”
- Court Dismisses Minority LLC Members’ Derivative Claims For Failure To Plead Demand Futility In The Complaint On April 22, 2026, in Mayer v. Goldner, Index No. 659341/2025, Justice Andrea Masley denied plaintiffs’ motion for appointment of a temporary receiver and a preliminary injunction and granted defendants’ cross motion to dismiss the complaint.
- Court Declares Petitioner Remains Managing Member Of LLC Because Operating Agreement Did Not Provide For Removal By Majority Vote On January 11, 2022, in McCormack v. Kuras, Index No. 656434/2021, Justice Joel M. Cohen granted in part a petition for declaratory relief, declaring that petitioner is and remains the managing member of respondent Triboss Brooklyn, LLC. Respondents had attempted to remove petitioner as managing member by majority vote and to amend the company's articles of organization without petitioner's consent. The Court held that, under the unambiguous terms of the operating agreement, petitioner was appointed managing member and the agreement provided no basis for his removal by majority vote; the only provision addressing a change in the managing member applied where the managing members' aggregate ownership fell below 20 percent, a threshold petitioner had continuously exceeded. The Court also denied respondents' motion to dismiss the petition, denied petitioner's request for preliminary injunctive relief, and denied as premature the branch of the petition seeking judicial dissolution. In rejecting respondents' arguments, the Court explained:
- Who Pays When a New York Office-to-Residential Conversion Goes Wrong? In early July 2026, two buckling columns at the former Pfizer headquarters conversion in Midtown Manhattan shut down five blocks, emptied nearby buildings, and relocated a school. No one was hurt. But the correction work will be substantial, and someone will pay for it.
- Court Denies Motion To Hold Defendants In Civil Contempt, Holding Dispute Over Document Production Should Be Resolved Through Ordinary Discovery On May 6, 2026, in Bourbiaux v. Probst, Index No. 651161/2025, Justice Robert R. Reed denied plaintiffs' motion to hold defendants and their attorneys in civil contempt. The action arises from a partnership dispute over alleged asset diversions and alleged violations of an LLC operating agreement. The parties had resolved plaintiffs' earlier motion for a TRO and injunctive relief by a so-ordered stipulation, in which defendants agreed to provide plaintiffs with various business and financial records within 90 days. Plaintiffs then moved to hold defendants and their attorneys in civil contempt pursuant to Judiciary Law §§ 753(A)(3), 756, and 773, or alternatively for sanctions under CPLR 3126, asserting that defendants failed to complete production by the deadline and that the noncompliance impaired plaintiffs' ability to quantify damages and value their ownership interests. Defendants contended that they had produced all responsive documents in their possession and that plaintiffs failed to meet and confer in good faith. The Court denied the motion, explaining:
- Complaint Relating To Bankrupt Non-Party Dismissed For Failure To State A Claim On April 22, 2026, Justice Andrea Masley of the New York County Commercial Division identified various pleading deficiencies in granting defendants’ motion to dismiss a complaint seeking monetary and injunctive relief for misconduct alleged to have led to the bankruptcy of a non-party. The case is Mayer v. Goldner, Index No. 659341/2025.
- Contractual Attorneys’ Fees Reduced For Block Billing, Apparent Inefficiencies On April 10, 2026, Justice Melissa A. Crane of the New York County Commercial Division resolved a fee application made by plaintiff further to the Court’s award of contractual attorneys’ fees. The case is Coney Island Auto Holdings Corp. v. Parts Authority, LLC, Index No. 656816/2022.
- Sanctions Granted Defendant For Plaintiff’s Maintenance Of Frivolous Claims On June 3, 2026 , Justice Robert R. Reed of the New York County Commercial Division granted a defendant’s motion for its fees and costs in defending an action that had been dismissed by the Appellate Division, First Department. The case is Cortlandt St. Recovery Corp. v. TPG Capital Mgt., L.P., Index No. 651176/2017.
- Court Snuffs Out Deceptive Advertising Claims Over “Smokehouse” Almonds On July 10, 2026, in O’Connor v. Blue Diamond Growers, Index No. 160511/2025, Justice Andrea Masley of the New York County Commercial Division granted defendant’s motion to dismiss plaintiff’s complaint.
- Policyholder’s Claims Against Policy Administrator To Recover Demutualization Proceeds Survive Motion To Dismiss On July 10, 2026, in Kim v. Radiology Associates of Main Street, P.C., Index No. 715347/2025, Justice Marguerite A. Grays of the Queens County Commercial Division denied defendant’s pre-answer motion to dismiss.
- Schlam Stone Partner Brad Simon Appears On July 20 WNBC News Segment Addressing Mayor Mamdani’s Threat To Arrest Benjamin Netanyahu
- Court Holds Earnout Amount Cannot Be Negative Based On Extrinsic Evidence Of Contractual Intent, So Sellers Owed No Payment On July 2, 2026, in Tromer v. PEAK6 Insurtech Holdings LLC, Index No. 653530/2023, Justice Andrew Borrok of the New York County Commercial Division granted plaintiff’s renewed motion for partial summary judgment, holding that the “Earnout Amount” under the parties’ Unit Purchase Agreement could not be a negative number and that the plaintiff therefore did not owe the defendant any negative earnout. The agreement provided that “in no event shall the Earnout Amount be less than zero dollars,” but the defendant counterclaimed that two components later added to the formula could drive the Earnout Amount below zero, entitling it to a payment from the sellers. In a prior order, the Court had denied summary judgment to both sides and permitted limited discovery of the transaction counsel who drafted the agreement as to the clause's meaning.
- Court Precludes Defendant From Using Documents It Failed To Produce During Discovery But Declines To Strike Affirmative Defense Or Impose Adverse Inference On April 28, 2026, in Sasson v. Bridger Consulting Group, Inc., Index No. 654872/2024, Justice Melissa A. Crane granted in part and denied in part plaintiff's motion for a preclusion order and an adverse inference.
- Court Confirms JHO Report Recommending Protective Order, Rejecting Argument That Referee Exceeded Scope of Reference On May 11, 2026, in Morgan v. St Mark's World Acquisition LLC, Index No. 651186/2021, Justice Andrea Masley denied plaintiff's motion to reject a Judicial Hearing Officer's report and recommendation and confirmed the report in its entirety.
- Schlam Stone & Dolan Partner Joshua Wurtzel Discusses the Difference Between Above-the-Line and Below-the-Line Recourse Liability in Nonrecourse Financing
- Court Grants Summary Judgment Dismissing Counterclaims Where Extrinsic Evidence Confirmed Earnout Could Not Fall Below Zero On July 2, 2026, in Tromer v. PEAK6 Insurtech Holdings LLC, Index No. 653530/2023, Justice Andrew Borrok granted plaintiff's renewed motion for partial summary judgment dismissing two of defendant's counterclaims.