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Posted: September 21, 2026
Written by: Thomas A. KissaneDenial of Default Judgment Where Defendant Denied Receiving Summons and Complaint Affirmed
On July 9, 2026, the First Department unanimously affirmed Commercial Division Justice Robert R. Reed’s denial of plaintiff’s motion for a default judgment and grant of defendant’s motion for additional time to answer, holding that Supreme Court providently exercised its discretion in light of New York’s strong public policy favoring resolution of disputes on the merits. The case is G-Unit Books, Inc. v Tompkins, 251 A.D.3d 424 (1st Dep’t 2026) affirming a March 2026 order in Index No. 654265/2025. Read More
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Posted: September 18, 2026
Written by: Ian WeissCourt Dismisses M&A Buyer’s Fraud Claims Absent Evidence Of The Acquired Company’s Actual Value
On August 28, 2026, in VXI Lux Holdco S.à r.l. v. SIC Holdings, LLC, Index No. 652064/2017, 2026 NY Slip Op 51408(U), Justice Robert R. Reed of the New York County Commercial Division granted defendants summary judgment dismissing plaintiff’s fraud causes of action. Read More
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Posted: September 16, 2026
Written by: Ian WeissFirst Department Enforces Nonrecourse Provision To Bar Interference Claim Based On Conduct Serving Legitimate Economic Self-Interest
On September 3, 2026, in Jefferies LLC v. Mountain State Energy Holdings LLC, Index No. 650599/25, the Appellate Division, First Department dismissed a tortious interference claim against a nonparty to the underlying agreement, based on the agreement’s nonrecourse provision. Read More
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Posted: September 14, 2026
Written by: Ian WeissFirst Department Holds Consequential Damages Waiver Does Not Reach Owner’s Direct Damages
On September 10, 2026, in Gamma USA, Inc. v. Pavarini McGovern, LLC, Index No. 655472/23, Case No. 2025-01311, the Appellate Division, First Department, unanimously modified an order of Justice Melissa A. Crane of the New York County Commercial Division that had limited a counterclaim to a $3.6 million liquidated damages cap. Read More
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Posted: September 11, 2026
First Department Affirms Dismissal Of Legal Malpractice Claim Where Alleged Causation Was Speculative
On March 10, 2026, in Gans v. Leech Tishman Fuscaldo & Lampl, LLC, 247 AD3d 456, Index No. 152695/24, the Appellate Division, First Department, unanimously affirmed an order of Justice Anar Rathod Patel, which dismissed a legal malpractice complaint and denied leave to amend. Read More
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Posted: September 9, 2026
Court Dismisses Good Faith And Fair Dealing Counterclaim Because Agreement Contained No Exclusivity Provision
On August 21, 2026, in Anexia, Inc. v. Horizon Data Solutions Ctr., LLC, Index No. 657444/2019, Justice Robert R. Reed granted plaintiff summary judgment dismissing defendant's counterclaim for breach of the implied covenant of good faith and fair dealing. Read More
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Posted: September 4, 2026
Written by: Channing J. TurnerCourt Denies Omnibus Sealing of Summary Judgment Motion Papers but Permits Sealing of Specific Exhibits
On July 2, 2026, in Time Warner Cable Enterprises LLC v. Nokia of America Corporation, Index No. 650748/2022, Justice Robert R. Reed of the New York County Commercial Division granted in part and denied in part four motions to seal. Read More
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Posted: September 2, 2026
Written by: Channing J. TurnerCourt Orders Production of Withheld Documents Where Boilerplate Privilege Assertions and a Deficient Privilege Log Failed To Carry the Party’s Burden
On August 3, 2026, in Python Financial Solutions, Inc. v. SDCK I LLC, Index No. 653659/2025, Justice Robert R. Reed of the New York County Commercial Division ordered plaintiff to produce two documents it had withheld on privilege grounds due to insufficiently describing the privilege in written objections. Read More
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Posted: August 31, 2026
Written by: Channing J. TurnerCourt Dismisses LLC Members’ Labor Law Wage Claims Because the Pleadings Describe Equity Participants Rather Than Employees
On July 27, 2026, in Bourbiaux v. Probst, Index No. 651161/2025, Justice Robert R. Reed of the New York County Commercial Division granted in part and denied in part the managing members’ motion to dismiss the second amended complaint. Read More
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Posted: August 28, 2026
Written by: Thomas A. KissaneCourt Rejects Motion in Limine as Untimely “Summary Judgment in Disguise”
On April 21, 2026, Justice Melissa A. Crane of the New York County Commercial Division rejected defendant’s attempt, through a motion in limine, to limit an upcoming trial to its damages, holding that the request amounted to an untimely motion for summary judgment on plaintiff’s affirmative claims. The case is U.S. Pony Holdings, LLC v. Fashion Footwear LLC, Index No. 655022/2022. Read More
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Posted: August 26, 2026
Written by: Thomas A. KissaneFraud Claims Dismissed Where Offering Plan Directed Sophisticated Purchasers to Ground Lease Containing Allegedly Concealed Terms
On April 1, 2026, Justice Robert R. Reed of the New York County Commercial Division dismissed fraud claims by cooperative shareholders who alleged that an offering plan misrepresented the formula governing increases in the cooperative’s ground rent. The case is 269 W. 87th St. Apt. Corp. v QSB 267 Prop. Co., LLC, Index No. 655615/2024. Read More
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Posted: August 24, 2026
Court Awards Nazi-Looted Modigliani to Original Owner’s Estate, Holding Speculation About Provenance Insufficient to Defeat Summary Judgment
On April 3, 2026, Justice Joel M. Cohen of the New York County Commercial Division granted summary judgment to the estate of Oscar Stettiner on claims seeking return of Amedeo Modigliani’s painting Seated Man With a Cane, holding that the estate established Stettiner’s superior right to possession and that defendants’ alternative theories concerning the Painting’s provenance were too speculative to create a triable issue of fact. The case is Greason v Nahmad, Index No. 650646/2014. Read More
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Posted: August 21, 2026
Written by: Ian WeissCourt Denies Motion For Summary Judgment In Lieu Of Complaint And Dismisses Action Because Return Date Did Not Give Defendant His Full Time To Appear
On August 6, 2026, in Gonzalez v. Marte, Index No. 63818/2026, Justice Gretchen Walsh of the Westchester County Commercial Division denied plaintiff’s motion for summary judgment in lieu of complaint and dismissed the action without prejudice. Plaintiff alleged that defendant had failed to pay the balance due on a $530,000 promissory note given in connection with the sale of plaintiff’s shares in a restaurant corporation. Defendant never appeared or opposed the motion. The Court held that the motion had nonetheless been short-served, and explained: Read More
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Posted: August 19, 2026
Written by: Ian WeissCourt Enforces Loan Agreement Even Though Some Funds Were Issued To Borrower’s CEO Rather Than Borrower Itself
On August 6, 2026, in Kelly v Munn Works, LLC, Index No. 64177/2026, Justice Gretchen Walsh of the Westchester County Commercial Division granted plaintiff’s motion for summary judgment in lieu of complaint. Read More
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Posted: August 17, 2026
Written by: Ian WeissCourt Holds Minority LLC Members Are Equity Participants, Not Employees, Under New York Labor Law
On July 27, 2026, in Bourbiaux v. Probst, Index No. 651161/2025, Justice Robert R. Reed of the New York County Commercial Division granted in part and denied in part defendants' motion to dismiss. Read More
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Posted: August 14, 2026
Written by: Ian WeissCourt Finds Triable Issues In Aircraft Lease Dispute That Include Whether Lessor Prevented Lessee From Returning Engine
On July 15, 2026, in Magnetic Parts Trading Limited v National Air Cargo Group, Inc., Index No. 653266/2020, Justice Robert R. Reed of the New York County Commercial Division denied plaintiff's motion for partial summary judgment on its breach of lease claim, in part because an issue of fact existed under the doctrine of prevention. Read More
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Posted: August 12, 2026
Written by: Ian WeissCourt Permits Nonparty Subpoenas Seeking Endorsement Agreements With Professional Golfer In Commission Dispute
On July 10, 2026, in Schaeffer v GSE Worldwide, Index No. 652676/2021, Justice Robert R. Reed of the New York County Commercial Division denied the defendants’ motion to quash fourteen nonparty subpoenas. Read More
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Posted: August 10, 2026
Written by: Ian WeissCourt Holds Initial Lender’s Assignee Has Standing To Substitute As Plaintiff In Action For Breach Of Guaranties
On July 23, 2026, in CPIF Lending, LLC v Segal, Index No. 652592/2025, Justice Robert R. Reed of the New York County Commercial Division held that a nonparty assignee had standing to move to substitute as plaintiff in an action for breach of guaranty. Read More
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Posted: August 7, 2026
Court Dismisses Minority LLC Members’ Derivative Claims For Failure To Plead Demand Futility In The Complaint
On April 22, 2026, in Mayer v. Goldner, Index No. 659341/2025, Justice Andrea Masley denied plaintiffs’ motion for appointment of a temporary receiver and a preliminary injunction and granted defendants’ cross motion to dismiss the complaint. Read More
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Posted: August 5, 2026
Court Declares Petitioner Remains Managing Member Of LLC Because Operating Agreement Did Not Provide For Removal By Majority Vote
On January 11, 2022, in McCormack v. Kuras, Index No. 656434/2021, Justice Joel M. Cohen granted in part a petition for declaratory relief, declaring that petitioner is and remains the managing member of respondent Triboss Brooklyn, LLC. Respondents had attempted to remove petitioner as managing member by majority vote and to amend the company's articles of organization without petitioner's consent. The Court held that, under the unambiguous terms of the operating agreement, petitioner was appointed managing member and the agreement provided no basis for his removal by majority vote; the only provision addressing a change in the managing member applied where the managing members' aggregate ownership fell below 20 percent, a threshold petitioner had continuously exceeded. The Court also denied respondents' motion to dismiss the petition, denied petitioner's request for preliminary injunctive relief, and denied as premature the branch of the petition seeking judicial dissolution. In rejecting respondents' arguments, the Court explained: Read More
