Blogs

Monthly Archives: October 2019

Posted: October 14, 2019

Faithless Servant Claim Requires Defendant to Have Acted Directly Against Employer’s Interests as in Embezzlement, Improperly Competing or Usurping Business Opportunities

On October 1, 2019, the First Department issued a decision in Bluebanana Group v. Sargent, 2019 NY Slip Op. 07014, holding that a faithless servant claim requires that the employee-defendant acted directly against the employer’s interests, explaining: Plaintiffs have failed to state a cognizable claim for breach of the duty of loyalty, which requires the... Read more »

Posted: October 13, 2019

Fraud Claim Cannot be Based on Alleged Intention Not to Perform Contract

On September 25, 2019, Justice Sherwood of the New York County Commercial Division issued a decision in Roy Food & Wine LLC v. Meregalli, 2019 NY Slip Op. 32875(U), dismissing a fraud claim based on an alleged misrepresentation of an intention to perform a contract, explaining: To state a cause of action for fraud, a... Read more »

Posted: October 12, 2019

Court Dismisses Federal Securities Fraud Claims

On September 26, 2019, Justice Scarpulla of the New York County Commercial Division issued a decision in Matter of Densply Sirona, Inc. v. XXX, 2019 NY Slip Op. 32849(U), dismissing federal securities fraud claims, explaining: I find that Plaintiffs’ statements concerning competition and the scope and prospects of Dentsply’s and Sirona’s business are expressions of... Read more »

Posted: October 9, 2019

Derivative and Individual Claims Based on Same Facts Cannot be Brought in Same Action

On September 23, 2019, Justice Scarpulla of the New York County Commercial Division issued a decision in Jobar Holding Corp. v. Halio, 2019 NY Slip Op. 32813(U), holding that derivative and direct claims based on the same facts cannot be brought in the same action, explaining: Although the complaint is rife with allegations that a... Read more »

Posted: October 6, 2019

Derivative Claims Against LLC’s Non-Managing Members Dismissed

On September 27, 2019, Justice Schecter of the New York County Commercial Division issued a decision in Weinstein v. W.W.W. Assoc., LLC, 2019 NY Slip Op. 32868(U), dismissing derivative claims against an LLC’s non-managing members, explaining: Barbara and Candee Weinstein seek dismissal of all claims asserted against them because plaintiff does not seek to pierce... Read more »

Posted: October 5, 2019

Default Judgment Denied Due to Failure to Prove Damages; Plaintiff Allowed to Take Discovery and Renew Motion

On September 27, 2019, Justice Schecter of the New York County Commercial Division issued a decision in W. & M. Operating, L.L.C. v. Bakhshi, 2019 NY Slip Op. 32865(U), denying default judgment due to a lack of proof of damages but allowing the plaintiff to take discovery and renew the motion, explaining: Porco, however, has... Read more »