Commercial Division Blog
Return of Files One Day Later Than Called for in Settlement Agreement Not Material Breach
On October 11, 2016, the First Department issued a decision in Madison Ave. Diamonds LLC v. KGK Jewelry LLC, 2016 NY Slip Op. 06661, holding that the defendant's "delivery of the converted computer files on Monday August 13, 2012, one day after the 45-day period provided for in the parties' settlement agreement, was permissible under General Construction Law § 25. Nothing in the agreement suggests an intent that August 12, 2012 was to be a firm deadline such that failure to deliver the files by that date constitutes a material breach of the agreement. That one of the 166 files was missing critical information did not render KGK in breach, as KGK was in substantial compliance."