Commercial Division Blog

Posted: December 7, 2015 / Categories Commercial, Standing

Plaintiff That Assigned Claims Lacked Standing

On November 24, 2015, the First Department issued a decision in Lehr Associates Consulting Engineers, LLP v. Daikin AC (Americas) Inc., 2015 NY Slip Op. 08626, dismissing claims which the plaintiff had assigned for lack of standing, explaining:

Plaintiff has no standing to maintain this suit, because after it assigned its claims against defendants to nonparty Timber Falls Foundation, it was no longer the real party in interest.

It would not avail plaintiff to amend the complaint to substitute Timber Falls as the plaintiff. As of the commencement of this action, Timber Falls could not have asserted claims against defendants, because its 270-day deadline to do so (per its settlement with plaintiff and plaintiff's insurer) had already passed.

(Internal quotations and citations omitted).