Monthly Archives: July 2019

Posted: July 31, 2019

“Knowing Acts” Exclusion Did Not Excuse Duty to Defend Where Insured’s Liability Could Be Established Without a Finding of Intentional Wrongdoing

On May 29, 2019, Justice Crane of the New York County Supreme Court issued a decision in Continental Cas. Co. v KB Ins. Co., Ltd., 2019 NY Slip Op 31513(U), holding that an exclusion for “Knowing Acts” did not excuse a CGL carrier’s duty to defend Lanham Act claims against the insured.  In the underlying... Read more »

Posted: July 31, 2019

Plaintiff’s Delay in Bringing Suit or Exercising Other Remedies Did Not Waive Right to Sue

On July 3, 2019, Justice Schecter of the New York County Commerical Division issued a decision in Taxi Medallion Loan Trust III v. Benson Hacking Corp., 2019 NY Slip Op. 32069(U), holding that a plaintiff’s delay in bringing suit or exercising other remedies did not waive its right to sue, explaining: Defendants have also failed... Read more »

Posted: July 30, 2019

Merger Clause That Lacked Specificity Needed to Bar Fraud Claims

On July 15, 2019, Justice Sherwood of the New York County Commercial Division issued a decision in Doctors Allergy Formula, LLC v. Valeant Pharm. Intl., 2019 NY Slip Op. 32064(U), holding that a merger clause lacked the specificity needed to bar fraud claims, explaining: As a threshold issue, Valeant argues that plaintiffs fraud claims are... Read more »

Posted: July 29, 2019

SIBOR Claims Dismissed for Lack of Standing

LAW 360 (subscription required) reports that a suit in the S.D.N.Y. against various banks alleging manipulation of the Singapore Interbank Offered Rate (“SIBOR”) has been dismissed by U.S. District Judge Alvin K. Hellerstein on grounds related to Plaintiff Fund Liquidation Holdings LLC’s standing. Specifically, Judge Hellerstein found that an agreement between the Plaintiff and FrontPoint... Read more »

Posted: July 29, 2019

Derivative Action Dismissed for Failure to Make Demand/Adequately Plead Demand Futility

On June 28, 2019, Justice Masley of the New York County Commercial Division issued a decision in Gammel v. Immelt, 2019 NY Slip Op. 32005(U), dismissing a derivative action for failure make a demand or adequately to allege demand futility, explaining: Business Corporation Law § 626 sets forth specific procedures that must be followed in... Read more »

Posted: July 27, 2019

Court Explains Basis for Calculating Undertaking in Connection With An Injunction

On July 5, 2019, Justice Masley of the New York County Commercial Division issued a decision in Eastmore Mgt., LLC v. Gunta, 2019 NY Slip Op. 32040(U), illustrating the calculation of an undertaking in conjunction with an injunction: CPLR 6312(b) provides that prior to the granting of a preliminary injunction, the plaintiff shall give an... Read more »

Posted: July 25, 2019

Movant’s Inability to Find Evidence in its Possession Insufficient Grounds for Renewal

On July 11, 2019, Justice Friedman of the New York County Commercial Division issued a decision in Trimarco v. Edwards, 2019 NY Slip Op. 32019(U), holding that a movant’s inability to find evidence in its possession was insufficient grounds for renewal, explaining: Pursuant to CPLR 2221(e)(2) and (3), a motion for leave to renew shall... Read more »

Posted: July 24, 2019

Fraud Claim Not Duplicative of Contract Claim Because Alleged Misrepresentations Were Collateral to the Contract

On July 17, 2019, the Second Department issued a decision in, LLC v. Halo Group, Inc., 2019 NY Slip Op. 05644, holding that fraud claims were not duplicative of a contract claim because the alleged misrepresentations were collateral to the promises made in the contract, explaining: The essential elements of a cause of action... Read more »