Commercial Division Blog: Current Developments in the Commercial Divisions of the New York State Courts

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December 12, 2025 Segregated Account of Bermuda Reinsurance Company Lacked Capacity to Sue
On November 6, 2025, Justice Joel M. Cohen of the New York County Commercial Division issued a decision in Mobility Seller Representative LLC v. AMTrust Financial Services, Inc., Index No. 652780/2022, dismissing without prejudice a complaint because of the plaintiff's lack of capacity to sue under Bermuda law, explaining: Read More
May 24, 2024 Court Denies Motion To Dismiss Breach Of Contract Claim Written by: Jeffrey M. Eilender, Thomas A. Kissane, Samuel L. Butt, Joshua Wurtzel, Channing J. Turner
On April 12, 2024, Justice Margaret A. Chan denied defendant’s motion to dismiss plaintiff’s complaint based on documentary evidence, lack of standing/capacity to sue, and for failure to state a claim. In Alternative Global Six, LLC v. Durham Homes, LLC, Index No. 653837, plaintiff alleged a single cause of action for breach of contract based on defendant’s failure to repay loans and interest in the amount of $7,277,969. As to the lack of standing and capacity to sue, Justice Chan explained: Read More
January 10, 2024 Foreign LLC Doing Business in New York Lacks Capacity to Sue Unless Registered To Do Business in New York Written by: Jeffrey M. Eilender, Thomas A. Kissane, Samuel L. Butt, Joshua Wurtzel, Channing J. Turner
On December 12, 2023, Justice Barry R. Ostrager of the New York County Commercial Division issued a decision in South Beach Tristar 800 LLC v. Lincoln Arts ERFR LLC, Index No. 654461/2023, holding that a plaintiff foreign limited liability company doing, but not licensed to do, business in New York lacked legal capacity to sue, but nonetheless denying defendant's motion to dismiss on the condition that plaintiff promptly register to do business in New York, explaining: Read More
April 17, 2023 First Department Finds Lower Court Applied Wrong State’s Law to Statute of Limitations and Standing Written by: Jeffrey M. Eilender, Thomas A. Kissane, Samuel L. Butt, Joshua Wurtzel, Channing J. Turner
In a Decision, dated March 30, 2023, in MLRN LLC v. U.S. Bank, NA, 2023 NY Slip Op 01748, the First Department, among other things, (1) reversed the lower court’s denial of defendant’s motion to dismiss causes of action for certain breaches holding that the court should not have found that the claims accrued in New York and were timely under New York’s six-year statute of limitations and (2) reversed the lower court’s granting of plaintiff’s motion for summary judgment finding that court should have applied New York’s choice of law. The Court explained: Read More
March 29, 2023 Assignment Was Not Champertous Written by: Jeffrey M. Eilender, Thomas A. Kissane, Samuel L. Butt, Joshua Wurtzel, Channing J. Turner
In a Decision and Order, dated March 1, 2023, in IKB Int’l S.A. v. Morgan Stanley, Index No. 653964/2012, Justice Melissa Crane granted in part and denied in part Morgan Stanley’s motion for summary judgment.  Schlam Stone & Dolan LLP represents Plaintiffs in this action.  Morgan Stanley argued, inter alia, that the assignment of claims to IKB AG was champertous.  The Court rejected this argument, explaining:  Read More
March 27, 2023 Recently Completed Assignment Sufficient For Standing At Pleading Stage Written by: Jeffrey M. Eilender, Thomas A. Kissane, Samuel L. Butt, Joshua Wurtzel, Channing J. Turner
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: Read More
December 14, 2022 Plaintiff Can Cure Standing Defect After Suit Commenced Written by: Jeffrey M. Eilender, Thomas A. Kissane, Samuel L. Butt, Joshua Wurtzel, Channing J. Turner
On October 13, 2022, Justice Margaret A. Chan of the New York County Commercial Division issued a decision in Park Royal I LLC v. HSBC Bank USA, N.A., 2022 N.Y. Slip Op. 33501(U), denying defendant's motion for leave to reargue and declining to dismiss a suit brought by a plaintiff that lacked standing at the time of suit on the ground that plaintiff later cured this standing defect, explaining: Read More
April 21, 2022 Owner Has Standing Even Though It Was Not a Party to Consignment Agreement Written by: Jeffrey M. Eilender, Thomas A. Kissane, Samuel L. Butt, Joshua Wurtzel, Channing J. Turner
On January 11, 2022, in Artemus USA LLC v Leila Taghinia-Milani Inc., 2022 NY Slip Op 00115, the First Department, inter alia, affirmed the denial of defendants’ motion to dismiss the breach of contract claim brought by the owner of artwork who was not a party to the consignment agreement for lack of standing. Read More
January 26, 2022 Executors of Late Father’s Estate Have Standing to Sue Non-Profit and Its Directors
On November 26, 2021, in Epstein v Epstein Teicher Philanthropies, 2021 NY Slip Op 32460(U), Justice Masley held that co-successor executors of an estate that bequeathed money to a charitable organization had standing to sue the nonprofit and its directors for failure to obey the charity’s purpose by donating money to Ohio rather than NY based institutions. The Court explained: Read More
September 10, 2021 RPAPL Broad Standing Rules Inapplicable Where Claim Really About Ownership of LLC
On August 26, 2021, the First Department issued a decision in FGP 1, LLC v Dubrovsky, 2021 NY Slip O… Read More
April 7, 2021 Claim Related to Hacking of Client Data Dismissed for Lack of Damages
On March 30, 2021, Justice Platkin of the Albany County Commercial Division issued a decision in Kea… Read More
November 7, 2020 Dissolved Corporation Can Still Bring Lawsuit
On October 22, 2020, Justice Borrok of the New York County Commercial Division issued a decision in … Read More
September 22, 2020 Undisclosed Principal May Sue on a Contract Made in its Agent's Name
On September 8, 2020, Justice Borrok of the New York County Commercial Division issued a decision in… Read More
December 5, 2019 Directing RMBS Certificateholder Not "Effective" Plaintiff Causing Suit to Fail for Lack of Standing Under PSA's No Action Clause
On November 21, 2019, Justice Friedman of the New York County Commercial Division issued a decision … Read More
May 5, 2019 Defendant Waives Standing Defense By Failing to Raise it in Answer or Motion to Dismiss
On March 7, 2019, Justice Platkin of the Albany County Commercial Division issued a decision in Fra… Read More
March 16, 2019 Claim Time-Barred Because it Was Not Assigned to Plaintiff Until After Statute of Limitations Had Run
On February 28, 2019, the First Department issued a decision in Rizack v. Signature Bank, N.A., 2019… Read More
February 14, 2019 A Lawyer's Failure to Have an Office in New York Does Not Doom Cases Filed by That Lawyer
On February 14, 2019, the Court of Appeals issued a decision in Arrowhead Capital Fin., Ltd. v. Chey… Read More
October 19, 2018 New York Law Applied to Question of Whether Tort Claims Passed to Belgian Assignee
On October 9, 2018, the First Department issued a decision in Royal Park Invs. SA/NV v. Morgan Stanl… Read More
October 10, 2018 Shareholder Has Standing to Sue Corporation's Counsel for Malpractice
On September 20, 2018, Justice Sherwood of the New York County Commercial Division issued a decision… Read More
October 19, 2017 Plaintiff Lacked Standing to Assert Claims for Damage to Affiliate
On October 2, 2017, Justice Ramos of the New York County Commercial Division issued a decision in Ma… Read More

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