Commercial Division Blog: Current Developments in the Commercial Divisions of the New York State Courts

  • Posted: February 28, 2024 / Commercial Division Blog Court Has Jurisdiction Over LLC Based On Alter Ego Allegations
    On January 26, 2024, Justice Melissa A. Crane denied defendant’s motion to dismiss for lack or jurisdiction. The decision in Bochenek v. Ashton, Index No. 654904/2022, concerned defendant Twenty Seven Investment Group, LLC (“TSIG”). As to jurisdiction over TSIG, the Court explained: Read More
  • Posted: February 26, 2024 / Commercial Division Blog Breaches Of Non-Monetary Provisions Of Credit Agreement Are Material
    On January 26, 2024, Justice Melissa A. Crane granted plaintiffs’ motion for summary judgment regarding, inter alia, their breach of contract claim. The decision in Regions Bank v. VativoRX, LLC, Index No. 654741/20229, rejected defendant’s argument that the breach of certain terms in the credit agreement at issue requiring the provision of annual audited financial statements, along with related certifications and accompany documentation, and the transfer of accounts to plaintiffs were not material breaches. The Court disagreed: Read More
  • Posted: February 23, 2024 / Commercial Division Blog Court Confirms Arbitral Award After the Party that Initially Compelled the Arbitration Lost and was Forced to Pay Costs and Fees
    On January 14, 2024, Justice Margaret A. Chan denied a motion to vacate an arbitral award brought by a party that had previously moved to compel arbitration in the first place. The decision in Skyline Steel, LLC v. PilePro LLC, et al., Index No. 650531/2015, noted that petitioner Skyline Steel had first initiated the matter by moving to stay arbitration. Respondent PilePro opposed that motion and successfully cross-moved to compel arbitration. The parties then proceeded to arbitration under JAMS Expedited Procedures. However, after PilePro lost in arbitration and was forced to pay costs and fees, it returned to court with a motion under CPLR 7511 to vacate the arbitral awards, arguing among other things that the arbitration panel exceeded its authority. The Court rejected that motion, finding that the arbitration panel had carefully considered the evidence, made logical rulings, and acted within its authority when it awarded Skyline more than $200,000 in fees and costs. The Court explained, in part: Read More
  • Posted: February 21, 2024 / Commercial Division Blog Court Grants In Camera Review of Documents Despite Referee’s Decision, Noting Review is Standard Practice in Commercial Division
    On January 20, 2024, Justice Andrea Masley granted a motion requesting in camera review of documents even after a discovery referee had declined to perform an in camera review. The decision in CWCapital Cobalt VR Ltd. v. CWCapital Investments LLC, et al., Index No. 653277/2018, vacated the referee’s order and allowed for in camera review of 35 emails exchanged between lawyers and nonlawyers over which the defendants had claimed attorney-client privilege. In granting the motion, Justice Masley indicated that in camera review has become common practice in the Commercial Division. The Court explained: Read More
  • Posted: February 16, 2024 / Commercial Division Blog Plaintiff Barred From Calling Witnesses at Trial Due to Failure to Identify Witnesses During Discovery or in Pre-Trial Filings
    On February 1, 2024, Justice Andrea Masley of the New York County Commercial Division, issued a decision in Gerasimowicz v Aslanis, 2024 NY Slip Op 30384(U), Index No. 654322/2013, granting defendants’ motion to preclude plaintiff from calling seven witnesses at trial based on plaintiff’s failure to identify those witnesses despite being repeatedly asked to do so during discovery or pursuant to the Court-ordered pre-trial schedule. The Court rejected plaintiff’s argument that this failure could be cured by permitting the witnesses to be deposed before trial, noting plaintiff’s repeated failure to comply with discovery orders. The Court explained: Read More
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