Monthly Archives: June 2020

Posted: June 30, 2020

Prima Facie Tort Claim Fails Because Defendants Were Motivated By More Than Disinterested Malevolence

On June 4, 2020, Justice Borrok of the New York County Commercial Division issued a decision in LSG 105 W. 28th LLC v. Sinclair, 2020 NY Slip Op. 31764(U), holding that defendants could not be liable for prima facie tort when they were motivated by more than disinterested malevolence, explaining: The fifth cause of action... Read more »

Posted: June 29, 2020

Derivative Action Dismissed for Failure to Give Board Adequate Time to Respond to Demand

On April 4, 2020, Justice Masley of the New York County Commercial Division issued a decision in D. Karnofsky, Inc. v. Rozof, 2020 NY Slip Op. 31748(U), dismissing derivative claims because of the plaintiff’s failure to give the board adequate time to respond to the plaintiff’s demand, explaining: [D]efendants challenge plaintiff’s failure to allege pre-litigation... Read more »

Posted: June 27, 2020

Derivative Claims Based on Misconduct of Corporate Officers Barred by In Pari Delicto Doctrine

On June 4, 2020, Justice Cohen of the New York County Commercial Division issued a decision in Rutigliano v. Locantro, 2020 NY Slip Op. 31768(U), holding that derivative claims based on the misconduct of corporate officers were barred by the in pari delicto doctrine, explaining: Plaintiffs unjust enrichment and conversion claims are asserted on behalf... Read more »

Posted: June 26, 2020

That Plaintiff Rather Than Defendant Files Stipulation of Settlement Does Not Make Stipulation Ineffective

On May 15, 2020, Justice Sherwood of the New York County Commercial Division issued a decision in Fisher v. Stone, 2020 NY Slip Op. 31732(U), holding that the fact that the plaintiff, rather than the defendant (as required by CPLR 2104), filed a stipulation of settlement did not render the settlement ineffective, explaining: CPLR 2104... Read more »

Posted: June 25, 2020

Tax Returns Not Discoverable Without Strong Showing That Information is Indispensable

On April 22, 2020, Justice Knipel of the Kings County Commercial Division issued a decision in Safir v Charm City House, LLC, 2020 NY Slip Op. 31619(U), holding that tax returns were not discoverable without a strong showing that the information in them was indispensable to a party’s case, explaining: Contrary to defendants’ contention, they... Read more »

Posted: June 23, 2020

Economic Duress Not a Defense for At-Will Employees Who Sign Contracts Under Threat of Termination

A recent Commercial Division ruling analyzed whether an at-will employee can raise the affirmative defense of economic duress when his or her employer threatens to terminate the employee for refusal to sign a contract. In concurrence with existing New York precedent, the court concluded that because an employer may terminate an at-will employee at any... Read more »

Posted: June 23, 2020

Trust Entitled to Fees in RMBS Put-Back Action Based on Representation and Warranty Breaches

On May 25, 2020, Justice Friedman of the New York County Commercial Division issued a decision in Part 60 Put-Back Litigation, 2020 NY Slip Op. 31693(U), holding that a trustee can obtain attorneys’ fees from a seller in an RMBS put-back action based on representation and warranty breaches, but not deciding whether fees would be... Read more »

Posted: June 22, 2020

Nonsignatories Bound by Arbitration Provisions in Contract They Relied Upon in Asserting Claims

On May 29, 2020, Justice Ostrager of the New York County Commercial Division issued a decision in 2004 Parker Family LP v. BDO USA LLP, 2020 NY Slip Op. 50614(U), holding that non-signatories were bound by an arbitration provision in a contract upon which they had relied in asserting claims, explaining: As the First Department... Read more »