Blogs

Commercial Division Blog

Current Developments in the Commercial Divisions of the
New York State Courts by Schlam Stone & Dolan LLP

Posts Categorized: Commercial

Posted: June 13, 2021

Broker Not Entitled to Commission Because it was not the Procuring Cause of the Sale

On May 20, 2021, the First Department issued a decision Capin & Assoc., Inc. v. Herskovitz, 2021 NY Slip Op. 03249, holding that a broker was not entitled to a commission because it was not the procuring cause of a sale, explaining: Plaintiff and defendants LLCs never entered into any explicit written or oral brokerage... Read more »

Posted: June 12, 2021

Alleged Failure of Law Firm to Have a Written Engagement Letter Insufficient Basis to Vacate Arbitral Award in Fee Dispute

On May 20, 2021, the First Department issued a decision in Matter of Gibson, Dunn & Crutcher LLP v. World Class Capital Group, LLC, 2021 NY Slip Op. 03252, holding that the alleged failure to have a written engagement letter was an insufficient basis to vacate an abritral award in a legal fee dispute, explaining:... Read more »

Posted: June 11, 2021

Unjust Enrichment and Breach of Contract Claims Not Duplicative When There is a Question of Fact Regarding the Existence of a Contract

On May 27, 2021, the First Department issued a decision in CIP GP 2018, LLC v. Koplewicz, 2021 NY Slip Op. 03370, holding that unjust enrichment and breach of contract claims are not duplicative when there is a question of fact regarding the existence of a contract, explaining: With respect to the unjust enrichment claim,... Read more »

Posted: June 10, 2021

Party Not Entitled to Rescission of Contract When it Had An Adequate Remedy at Law

On May 20, 2021, the First Department issued a decision in Sky Coverage Inc. v. Alwex Inc., 2021 NY Slip Op. 03271, holding that a plaintiff was not entitled to rescission when it had an adequate remedy at law, explaining: Although the motion court properly denied plaintiffs’ motion for summary judgment on plaintiffs’ rescission claim,... Read more »

Posted: June 8, 2021

Theft of Funds in Lawyer’s Trust Account Insufficient Basis for a Claim for Conversion

On June 1, 2021, the First Department issued a decision in SH575 Holdings LLC v. Reliable Abstract Co., L.L.C., 2021 NY Slip Op. 03427, holding that the theft of funds from a lawyer’s trust account was an insufficient basis for a conversion claim, explaining: The court properly dismissed the claims for conversion. Where a conversion... Read more »

Posted: June 7, 2021

Allegations of Plaintiff’s Due Diligence Sufficient to Establish its Reasonable Reliance Necessary to State Fraud Claim

On May 27, 2021, the First Department issued a decision in Bullen v. CohnReznick, LLP, 2021 NY Slip Op. 03369, holding that allegations of the plaintiff’s due diligence were sufficient to establish that the plaintiff’s reliance on the defendant’s misrepresentations was reasonable, explaining: Plaintiffs also sufficiently alleged the element of reasonable reliance. They allegedly took... Read more »

Posted: June 5, 2021

Brokers Not Transferees for Purposes of Fraudulent Conveyance Claim

On June 1, 2021, the First Department issued a decision in McCormack Family Charitable Found. v. Fidelity Brokerage Servs., LLC, 2021 NY Slip Op. 03414, holding that brokers were not transferees for purposes of a fraudulent conveyance claim, explaining: The brokers were not transferees as contemplated by Debtor and Creditor Law § 276. A defendant... Read more »

Posted: June 4, 2021

Summary Judgment of Foreclosure Denied Because of Lack of Admissible Evidence of Payment Default

On May 7, 2021, Justice Knipel of the Kings County Commercial Division issued a decision in Majestic Crown NY LLC v. Archstone Acquisition Partners LLC, 2021 NY Slip Op. 31627(U), denying summary judgment on a foreclosure claim because of a lack of admissible evidence of a payment default, explaining: Generally, to establish prima facie entitlement... Read more »