- Posted: July 26, 2024 / Commercial Division Blog
Principal Whose Signature Is Forged on Guaranty May Nonetheless Be Held Liable If Principal Ratifies Guaranty By Retaining Loan Proceeds With Knowledge of Relevant Facts
On July 2, 2024, Justice Andrea Masley of the New York County Commercial Division issued a decision in Abrahami v. Feldman, et al., Index No. 652641/2021, holding that a principal whose signature was forged on a guaranty can nonetheless be liable under that guaranty if the principal ratifies the guaranty by retaining the loan proceeds with full knowledge of the material facts, but concluding that there were triable issues of fact precluding entry of summary judgment here because the purported guarantor denied initial knowledge of the underlying loan transaction, explaining: Read More
- Posted: July 24, 2024 / Commercial Division Blog
Claim for Breach of Noncompetition Covenant Dismissed Because Former Employee Was Not Unique and Because Covenant Was Overbroad
On July 5, 2024, Justice Andrea Masley of the New York County Commercial Division issued a decision in Multiplier Inc. v. Morena, et al., Index No. 653428/2022, granting a former employee's motion to dismiss a cause of action for breach of a noncompetition covenant on the ground that the former employee was not unique or irreplaceable, and also on the ground that the covenant was overbroad, explaining: Read More
- Posted: July 22, 2024 / Commercial Division Blog
Bankruptcy Order Benefiting Borrower Does Not Affect Guarantor's Obligations
On May 30, 2024, Justice Andrew Borrok of the New York County Commercial Division issued a decision in Harlem Multifamily LLC v. Reifer, Index No. 850009/2020, holding that a bankruptcy-court order that inured to the borrower's benefit did not relieve the non-debtor guarantor of his separate obligations under two guaranties, explaining: Read More
- Posted: July 19, 2024 / Commercial Division Blog
Court Denies Motion To Compel Production Of Emails Based On Spousal Privilege
On June 10, 2024, Justice Melissa A. Crane denied defendant’s motion to compel production of emails plaintiff had inadvertently produced and then clawed back, asserting spousal privilege. In Gnann v. Morgan Stanley Smith Barney LLC, Index No. 650104/2023, plaintiff made a production that included the disputed emails between plaintiff and nonparty Robert Oldaker. At plaintiff’s EBT, spousal privilege was asserted as to these emails and plaintiff’s counsel then sought to claw back those emails. Defendant Mannato moved to compel. The Court denied the motion, explaining: Read More
- Posted: July 17, 2024 / Commercial Division Blog
Court Grants Motion To Amend Complaint Where Amendments Were Based On Documents Produced By Defendants In Discovery
On May 26, 2024, Justice Joel M. Cohen granted plaintiffs’ motion to amend. The plaintiffs in Behar v. 5 Star Legal Funding, LLC, Index No. 657390/2020, who invested in certain litigation funds and advances as limited partners, asserted multiple claims against defendants alleging that defendants engaged in a pattern and practice of mismanagement, misuse, misappropriation, and diversion of plaintiffs’ funds. After discovery, plaintiffs moved to file their Second Amended Complaint. The Court granted the motion, explaining: Read More
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