Blogs

Monthly Archives: February 2019

Posted: February 12, 2019

Client Q&A: I’m Getting Sued for Breach of Contract. The Defense Costs Are Almost as Bad as the Suit Itself. Can I Force the Plaintiff to Pay My Attorneys’ Fees if I Win?

By Joshua Wurtzel For many businesses, the cost of defending against a lawsuit—even one that has little chance of success—can be harrowing. And defending against a breach of contract claim can be especially expensive—since insurance often doesn’t cover contract claims, contract (unlike fraud) claims don’t require a plaintiff to plead its claim with particularity, and... Read more »

Posted: February 12, 2019

Conspiracy to Breach Fiduciary Duty Claim Properly Dismissed for Failure to Allege Facts Relating to Acts in Support of Conspiracy

On February 1, 2019, the Fourth Department issued a decision in Cohen & Lombardo, P.C. v. Connors, 2019 NY Slip Op. 00755, dismissing a conspiracy to breach a fiduciary duty claim for failure to allege facts relating to acts in support of the conspiracy, explaining: [T]he court properly granted that part of the motion dismissing each of... Read more »

Posted: February 11, 2019

New LIBOR Suit Alleging Rate-Rigging Continued After 2014 Not Added to Existing LIBOR MDL

Law360 reports that the Southern District of New York has refused to join a new LIBOR class action filed by Putnam Bank with the ongoing LIBOR multi-district litigation that is being overseen by Judge Naomi Reice Buchwald. The existing LIBOR MDL concerns rate-rigging from 2007 to 2009/2010, when the British Bankers’ Association (BBA) was the... Read more »

Posted: February 11, 2019

“Offer for Sale” Can Constitute Advertising Injury Under CGL Policy

On December 19, 2018, the Second Circuit issued a decision in High Point Design, LLC v. LM Ins. Corp., Docket No. 16-1446-cv, holding that a counterclaim alleging patent and trade dress infringement in an “offer[] for sale” triggered an insurer’s duty to defend under the “advertising injury” provision of a CGL Policy. This coverage action... Read more »

Posted: February 11, 2019

Letter of Intent Binding Contract Requiring Parties to Negotiate and Consummate Sale Transaction

On January 28, 2019, Justice Ash of the Kings County Commercial Division issued a decision in A.J. Richard & Sons, Inc. v. Forest City Ratner Cos., LLC, 2019 NY Slip Op. 30215(U),holding that a letter of intent was a binding agreement to negotiate and consummate a sale transaction, explaining: In determining whether the parties intended to... Read more »

Posted: February 10, 2019

Plaintiff Allowed to Correct Caption When It Mistakenly Sued Under Incorrect Name

On January 4, 2019, Justice Masley of the New York County Commercial Division issued a decision in Latin Mkts. Brazil, LLC v. Salsinha, 2019 NY Slip Op. 30201(U), allowing a plaintiff to correct a case caption when the plaintiff mistakenly sued under the incorrect name, explaining: Defendant objects to the original plaintiff Markets Group, Inc. as an... Read more »

Posted: February 8, 2019

Causes of Action for Books and Records Inspection Dismissed for Lack of Business Purpose

On January 31, 2019, the First Department issued a decision in Austin v. Gould, 2019 NY Slip Op. 00677, dismissing a cause of action seeking to inspect a limited liability company’s books and records for failure to identify a business purpose for the inspection, explaining: The first two causes of action seek to compel access to... Read more »

Posted: February 7, 2019

Mixed Result Meant that Neither Plaintiff Nor Defendant Was Prevailing Party for Award of Attorneys’ Fees Purposes

On January 31, 2019, the First Department issued a decision in Blue Sage Capital, L.P. v. Alfa Laval U.S. Holding, Inc., 2019 NY Slip Op. 00699, holding that a mixed result meant that neither party was a prevailing party for the purposes of awarding attorneys’ fees, explaining: Given the mixed results of this case, the court properly... Read more »

Posted: February 6, 2019

First Department Finds “No Heightened Pleading Standard” for Consequential Damages in Claim for Bad Faith Claims Handling

On January 17, 2019, the First Department issued a decision in D.K. Prop., Inc. v National Union Fire Ins. Co. of Pittsburgh, Pa., 2019 NY Slip Op 00347, holding that an insured need not satisfy a “heightened pleading standard” in alleging consequential damages arising from an insurer’s bad faith claim handling. This case involved a... Read more »