Commercial Division Blog
Posted: March 24, 2016 / Categories Commercial, Contracts, Real Property
Assignment Can be Effected by Delivery of Note Rather Than by Written Contract
On March 15, 2016, the First Department issued a decision in Brunner v. Estate of Chaim Lax, 2016 NY Slip Op. 01782, holding that in addition to being effected by a written contract, a note also can be assigned by delivery to the assignor, explaining:
Defendants contend that the note had not been validly assigned to plaintiffs prior to the commencement of this action. However, an assignment need not be in writing, but can be effected by physical delivery. The complaint alleges, "As of March 2014, plaintiff JBAM Realty LLC is in physical possession of the Note. While this allegation could have been better phrased, construed liberally and in the light of every possible favorable inference, it can be read as saying, "Since March 2014, JBAM has been in physical possession of the Note" — especially because plaintiffs' counsel represented at oral argument that his clients had physical possession of the note at the time they commenced their lawsuit.
(Internal quotations and citations omitted) (emphasis added).