- Posted: August 7, 2026 / Commercial Division Blog
Court Dismisses Minority LLC Members’ Derivative Claims For Failure To Plead Demand Futility In The Complaint
On April 22, 2026, in Mayer v. Goldner, Index No. 659341/2025, Justice Andrea Masley denied plaintiffs’ motion for appointment of a temporary receiver and a preliminary injunction and granted defendants’ cross motion to dismiss the complaint. Read More
- Posted: August 5, 2026 / Commercial Division Blog
Court Declares Petitioner Remains Managing Member Of LLC Because Operating Agreement Did Not Provide For Removal By Majority Vote
On January 11, 2022, in McCormack v. Kuras, Index No. 656434/2021, Justice Joel M. Cohen granted in part a petition for declaratory relief, declaring that petitioner is and remains the managing member of respondent Triboss Brooklyn, LLC. Respondents had attempted to remove petitioner as managing member by majority vote and to amend the company's articles of organization without petitioner's consent. The Court held that, under the unambiguous terms of the operating agreement, petitioner was appointed managing member and the agreement provided no basis for his removal by majority vote; the only provision addressing a change in the managing member applied where the managing members' aggregate ownership fell below 20 percent, a threshold petitioner had continuously exceeded. The Court also denied respondents' motion to dismiss the petition, denied petitioner's request for preliminary injunctive relief, and denied as premature the branch of the petition seeking judicial dissolution. In rejecting respondents' arguments, the Court explained: Read More
- Posted: August 3, 2026 / Commercial Division Blog
Court Denies Motion To Hold Defendants In Civil Contempt, Holding Dispute Over Document Production Should Be Resolved Through Ordinary Discovery
On May 6, 2026, in Bourbiaux v. Probst, Index No. 651161/2025, Justice Robert R. Reed denied plaintiffs' motion to hold defendants and their attorneys in civil contempt. The action arises from a partnership dispute over alleged asset diversions and alleged violations of an LLC operating agreement. The parties had resolved plaintiffs' earlier motion for a TRO and injunctive relief by a so-ordered stipulation, in which defendants agreed to provide plaintiffs with various business and financial records within 90 days. Plaintiffs then moved to hold defendants and their attorneys in civil contempt pursuant to Judiciary Law §§ 753(A)(3), 756, and 773, or alternatively for sanctions under CPLR 3126, asserting that defendants failed to complete production by the deadline and that the noncompliance impaired plaintiffs' ability to quantify damages and value their ownership interests. Defendants contended that they had produced all responsive documents in their possession and that plaintiffs failed to meet and confer in good faith. The Court denied the motion, explaining: Read More
- Posted: July 31, 2026 / Commercial Division Blog
Complaint Relating To Bankrupt Non-Party Dismissed For Failure To State A Claim
On April 22, 2026, Justice Andrea Masley of the New York County Commercial Division identified various pleading deficiencies in granting defendants’ motion to dismiss a complaint seeking monetary and injunctive relief for misconduct alleged to have led to the bankruptcy of a non-party. The case is Mayer v. Goldner, Index No. 659341/2025. Read More
- Posted: July 29, 2026 / Commercial Division Blog
Contractual Attorneys’ Fees Reduced For Block Billing, Apparent Inefficiencies
On April 10, 2026, Justice Melissa A. Crane of the New York County Commercial Division resolved a fee application made by plaintiff further to the Court’s award of contractual attorneys’ fees. The case is Coney Island Auto Holdings Corp. v. Parts Authority, LLC, Index No. 656816/2022. Read More
- Posted: July 27, 2026 / Commercial Division Blog
Sanctions Granted Defendant For Plaintiff’s Maintenance Of Frivolous Claims
On June 3, 2026 , Justice Robert R. Reed of the New York County Commercial Division granted a defendant’s motion for its fees and costs in defending an action that had been dismissed by the Appellate Division, First Department. The case is Cortlandt St. Recovery Corp. v. TPG Capital Mgt., L.P., Index No. 651176/2017. Read More
- Posted: July 24, 2026 / Commercial Division Blog
Court Snuffs Out Deceptive Advertising Claims Over “Smokehouse” Almonds
On July 10, 2026, in O’Connor v. Blue Diamond Growers, Index No. 160511/2025, Justice Andrea Masley of the New York County Commercial Division granted defendant’s motion to dismiss plaintiff’s complaint. Read More
- Posted: July 22, 2026 / Commercial Division Blog
Policyholder’s Claims Against Policy Administrator To Recover Demutualization Proceeds Survive Motion To Dismiss
On July 10, 2026, in Kim v. Radiology Associates of Main Street, P.C., Index No. 715347/2025, Justice Marguerite A. Grays of the Queens County Commercial Division denied defendant’s pre-answer motion to dismiss. Read More
- Posted: July 20, 2026 / Commercial Division Blog
Court Holds Earnout Amount Cannot Be Negative Based On Extrinsic Evidence Of Contractual Intent, So Sellers Owed No Payment
On July 2, 2026, in Tromer v. PEAK6 Insurtech Holdings LLC, Index No. 653530/2023, Justice Andrew Borrok of the New York County Commercial Division granted plaintiff’s renewed motion for partial summary judgment, holding that the “Earnout Amount” under the parties’ Unit Purchase Agreement could not be a negative number and that the plaintiff therefore did not owe the defendant any negative earnout. The agreement provided that “in no event shall the Earnout Amount be less than zero dollars,” but the defendant counterclaimed that two components later added to the formula could drive the Earnout Amount below zero, entitling it to a payment from the sellers. In a prior order, the Court had denied summary judgment to both sides and permitted limited discovery of the transaction counsel who drafted the agreement as to the clause's meaning. Read More
- Posted: July 17, 2026 / Commercial Division Blog
Court Precludes Defendant From Using Documents It Failed To Produce During Discovery But Declines To Strike Affirmative Defense Or Impose Adverse Inference
On April 28, 2026, in Sasson v. Bridger Consulting Group, Inc., Index No. 654872/2024, Justice Melissa A. Crane granted in part and denied in part plaintiff's motion for a preclusion order and an adverse inference. Read More
- Posted: July 15, 2026 / Commercial Division Blog
Court Confirms JHO Report Recommending Protective Order, Rejecting Argument That Referee Exceeded Scope of Reference
On May 11, 2026, in Morgan v. St Mark's World Acquisition LLC, Index No. 651186/2021, Justice Andrea Masley denied plaintiff's motion to reject a Judicial Hearing Officer's report and recommendation and confirmed the report in its entirety. Read More
- Posted: July 13, 2026 / Commercial Division Blog
Court Grants Summary Judgment Dismissing Counterclaims Where Extrinsic Evidence Confirmed Earnout Could Not Fall Below Zero
On July 2, 2026, in Tromer v. PEAK6 Insurtech Holdings LLC, Index No. 653530/2023, Justice Andrew Borrok granted plaintiff's renewed motion for partial summary judgment dismissing two of defendant's counterclaims. Read More
- Posted: July 10, 2026 / Commercial Division Blog
Court Denies Leave To Amend To Add RICO Claims, Finding Allegations Of Fraud And Breach Of Contract Cannot Be Recast As Racketeering
On May 11, 2026, in Jennie Enterprise, et al., v. Michael Shvo, et al., Index No. 653221/2024, Justice Andrea Masley denied plaintiffs’ motion for leave to file a second amended complaint adding causes of action for civil RICO violations, RICO conspiracy, fraudulent inducement, aiding and abetting fraudulent inducement, and breach of contract. Read More
- Posted: July 8, 2026 / Commercial Division Blog
Court Grants Reargument And Vacates Foreclosure Order, Holding That Deed In Lieu Of Foreclosure Must Be Treated As A Mortgage Under Real Property Law § 320
On June 13, 2026, in Shanghai Commercial Bank Ltd., et al., v. New Tent, LLC, et al., Index No. 850240/2024, Justice Andrea Masley granted defendants’ motion for reargument, vacated the court’s prior summary judgment order, and ruled that the deed in lieu of foreclosure executed under the parties’ Forbearance Agreement must be treated as a mortgage under Real Property Law (“RPL”) § 320, requiring plaintiffs to proceed by foreclosure and sale. Read More
- Posted: July 6, 2026 / Commercial Division Blog
Court Holds That Bank’s Threats To Withhold Funding And Commence Foreclosure Cannot Support Economic Duress To Invalidate Forbearance Agreement
On May 21, 2026, in New Tent, LLC, et al, v. Shanghai Commercial Bank Ltd., et al., Index No. 659251/2024, Justice Andrea Masley granted banks’ motions to dismiss claims that their threats to withhold funding and commence foreclosure created economic duress that should invalidate a forbearance agreement. Read More
- Posted: July 3, 2026 / Commercial Division Blog
Civil Contempt For Spouse Who Failed To Comply With Post-Judgment Subpoena
On May 11, 2026, Justice Andrew Borrok of the New York County Commercial Division granted a motion to hold the wife of a judgment debtor in contempt. The case is Hamway v. Sutton, Index No. 164541/2025. Read More
- Posted: July 1, 2026 / Commercial Division Blog
Alternate Service Allowed Upon Foreign Corporation
On May 9, 2026, Justice Andrea Masley of the New York County Commercial Division granted a motion for leave to effect alternate service under the Foreign Sovereign Immunities Act (“FSIA”, 28 U.S.C. §1608(b)(3)(C)). The case is Phillips Petroleum Company Venezuela Limited v. Petroleos De Venezuela, S.A., Index No. 659128/2025. Read More
- Posted: June 29, 2026 / Commercial Division Blog
Motions In Limine: Where Party Had Declined To Disclose Consultation With Counsel, Trial Testimony Precluded; Motions To Exclude Expert Witnesses Denied
On April 27, 2026, Justice Melissa A. Crane of the New York County Commercial Division decided a series of pre-trial motions in limine that had been argued on March 11, 2026. The case is Life Insurance Fund Elite, LLC v. Hamburg Commercial Bank AG, Index No. 153100/2023. Read More
- Posted: June 22, 2026 / Commercial Division Blog
Written by: Samuel L. Butt, Ian Weiss, Channing J. Turner, Thomas A. KissaneCourt Grants Leave To Implead Under Pre-2026 Version Of CPLR 1007 Because Action Was Commenced Before Amendment Was Enacted
On June 5, 2026, in LAM Group v. Anthony T. Rinaldi LLC, Index No. 650465/2022, Justice Robert R. Reed of the New York County Commercial Division granted a defendant leave to file a third-party complaint, holding that the 2026 amendment to CPLR 1007 did not govern the application. Read More
- Posted: June 19, 2026 / Commercial Division Blog
Written by: Samuel L. Butt, Channing J. Turner, Ian Weiss, Thomas A. KissaneCourt Grants Summary Judgment To Aviation Insurers Because War Perils Exclusion Bars Coverage For Aircraft Stranded In Russia
On May 13, 2026, in Aircastle Ltd. v. Chubb European Group S.E., Index No. 654131/2022, Justice Joel M. Cohen granted defendants' motions for summary judgment. Read More
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