Recently Completed Assignment Sufficient For Standing At Pleading Stage

In a Decision and Order on Motion, dated March 7, 2023, in Finitive LLC v. Pattelli, Index No. 155024/2022, Justice Barry R. Ostrager granted in part and denied in part Defendants’ motion to dismiss. In denying that portion of Defendants’ motion to dismiss which argued that Plaintiffs, including Private Brokers LLC (“PB”), lacked standing, the Court explained:

The Court declines to dismiss the First Amended Complaint based on plaintiffs' alleged lack of standing. Plaintiff PB is an alleged assignee of NCPS, a party to the Marketlend Agreement with a claim for payment for its services. The fact that the assignment was only recently completed does not defeat standing as a matter of law at the pleading stage. Plaintiff Finitive was also a party to the Marketlend Agreement so would have standing to sue as well. Standing is an issue wholly distinct from the issue whether a cause of action lacks merit. Defendants have not established the affirmative defense of lack of standing to sue based on irrefutable documentary evidence at the pleading stage.

The attorneys at Schlam Stone & Dolan frequently litigate disputes concerning standing and assignments. Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions concerning such issues.