- Posted: May 19, 2025 / Commercial Division Blog
Court Denies Motion To Dismiss Breach Of Fiduciary Duty Claims As Duplicative Of Breach Of Contract Claims
On March 31, 2025, Justice Melissa A. Crane denied defendants’ motion to dismiss plaintiff’s breach of fiduciary claims in G.O.C. Invs. Co. Inc. v. Boaz Bagbag, Index No. 650785/2024. Plaintiff claimed, in essence, that defendants fraudulently induced G.O.C. to invest millions of dollars to create two jointly owned companies but defendants improperly took funds belonging to or owed to the companies. As to the plaintiff’s breach of fiduciary duty claims, the Court explained: Read More
- Posted: May 16, 2025 / Commercial Division Blog
Court Rules A Federal Court’s Summary Judgment Order Could Not Support Res Judicata Until The Entry Of A Final Non-Appealable Judgment
On April 4, 2025, Justice Joel M. Cohen ruled that a defendant seeking to dismiss claims against him on grounds of res judicata could not rely on a federal court’s summary judgment order because the order was not a “final conclusion” to the claim. In Raistone Purchasing LLC-Series XXXVII v. Gustavo Andres Patino Ocampo, et al., Index No. 654931/2024, defendant Gustavo Patino Ocampo argued that a federal court’s order on summary judgment in a federal action precluded the claim against him in state court. The Court denied his motion to dismiss, explaining: Read More
- Posted: May 14, 2025 / Commercial Division Blog
Reference To “Other Obligations” In Payment Guarantees Does Not Prevent The Use Of CPLR 3213’s Accelerated Judgment Procedure
On March 25, 2025, Justice Melissa A. Crane granted a bank plaintiff’s motion for summary judgment in lieu of complaint under CPLR 3213 over the objection of defendants that the guarantee agreements referenced “other obligations” and therefore were not “instrument[s] for the payment of money only” under the rule. In Flagstar Bank, N.A. v. Olive Tree Asset Management LLC, et al., Index No. 653863/2024, three guaranteeing defendants pointed to language in their guarantee agreements referencing other obligations in an effort to show that the agreement concerned more than just a simple guarantee of payment that would allow accelerated judgment. The Court disagreed, explaining: Read More
- Posted: May 12, 2025 / Commercial Division Blog
Court Dismisses Action Brought By Real Estate Lenders and Lien Holders Concerning Allocation Of Building Expenses For Lack Of Standing
On April 11, 2025, Justice Andrea Masley granted a motion to dismiss an action brought by several lenders and lien holders on real property because their interest in the retail share of the property as collateral, even after a foreclosure and with power of attorney, did not suffice to give them standing. In Wilmington Trust, National Association, et al., v. Board of Managers 229 West 43rd Street Condominium, et al., Index No. 154811/2023, the lender plaintiffs sought a declaratory judgment declaring the allocation of expenses on façade work improper, as well as damages resulting from the allegedly improper allocation. The defendant board of managers moved to dismiss, arguing that the mere holding of promissory notes secured by a mortgage on parts of the property did not give the lenders standing to sue over expense allocation at the time it occurred, even if the lenders had since foreclosed on the collateral and secured power of attorney. The Court granted the motion to dismiss, explaining Read More
- Posted: May 9, 2025 / Commercial Division Blog
Summary Judgment Denied Where Fact Issues Remain Concerning Existence Of And Relationship Among Alleged Contracts
On March 30, 2025, Justice Joel M. Cohen denied summary judgment to defendant in an action asserting claims for breach of contract and quasi-contract arising from plaintiff’s employment. The case is Owen v. Array US, Inc., Index No. 651471/2022. Read More
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