On November 9, 2018, Justice Schecter of the New York County Commercial Division issued a decision in Noven Pharms., Inc. v. Novartis Pharms. Corp., 2018 NY Slip Op. 32851(U), holding that a valuation prepared as part of a joint venture’s break up was not privileged, explaining: Novartis has the burden of establishing that the valuation report… Read more »
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Commercial Division Blog
Posts Categorized: Commercial
City Department of Finance Not Entitled to Two Percent Payment Fee On Abandoned Funds Transferred to Comptroller
On October 25, 2018, Justice Ramos of the New York County Commercial Division issued a decision in Swezey v. Lynch, 2018 NY Slip Op. 32810(U), holding that the City Department of Finance was not entitled to a two percent fee on abandoned funds transferred to the City Comptroller, explaining: The DOF is the custodian of court-deposited… Read more »
Award of Lost Profits Upheld
On November 9, 2018, the Fourth Department issued a decision in Henderson Harbor Mariners’ Mar., Inc. v. Upstate Natl. Bank, 2018 NY Slip Op. 07555,, upholding an award of lost profits, explaining: We reject defendant’s contention that the trial court erred in denying its motion to set aside the verdict and for judgment in its favor… Read more »
Because Court Allowed Plaintiff to Amend Complaint, Court Erred in Deciding Summary Judgment Motion Before Defendant Answered Amended Complaint
On November 7, 2018, the Second Department issued a decision in R&G Brenner Income Tax Consultants v. Gilmartin, 2018 NY Slip Op. 07470, holding that because the IAS court allowed the plaintiff to amend its complaint, the court erred in deciding the plaintiff’s summary judgment motion before the defendant had answered the amended complaint, explaining: Here, contrary… Read more »
Fraud Claim Dismissed Because of Sophisticated Investor’s Lack of Due Diligence
On October 29, 2018, Justice Sherwood of the New York County Commercial Division issued a decision in Unique Goals Intl., Ltd. v. Finskiy, 2018 NY Slip Op. 32788(U), dismissing a fraud claim because of the sophisticated plaintiff’s lack of due diligence, explaining: The first cause of action for fraud is asserted by Faith Union and Unique… Read more »
Dismissal With Prejudice of Federal Securities Law Claims Does Not Bar Common Law Fraud Claims
On October 30, 2018, Justice Sherwood of the New York County Commercial Division issued a decision in Brown v. Cerebus Capital Mgt., L.P., 2018 NY Slip Op. 32782(U), holding that the prior dismissal with prejudice of federal securities law claims does not bar new common law fraud claims, explaining: In the first through eighth causes of… Read more »
Plaintiff Asserting Derivative Claims Must be Represented by Counsel
On November 1, 2018, Justice Schecter of the New York County Commercial Division issued a decision in Park v. Song, 2018 NY Slip Op. 28343, holding that a plaintiff asserting derivative claims must be represented by counsel, explaining: Whether a derivative plaintiff can maintain claims without being represented by counsel is a question of first impression under… Read more »
Minority Shareholders Must Give Other Shareholders an Opportunity to Buy Their Shares
On October 24, 2018, Justice Emerson of the Suffolk County Commercial Division issued a decision in Matter of Marro (Marjod Realty Corp.), 2018 NY Slip Op. 51502(U), holding that minority shareholders were required to give other shareholders an opportunity to purchase their shares, explaining: Business Corporation Law 1104-a provides that the holders of 20% or… Read more »
Corporate Officer May Be Held Liable for Corporation’s Conversion
On October 31, 2018, the Second Department issued a decision in Starr Indem. & Liab. Co. v. Global Warranty Group, LLC, 2018 NY Slip Op. 07346, holding that the plaintiff had sufficiently plead claims to hold corporate officers liable for the corporation’s conversion of the plaintiff’s property, explaining: A corporate officer, although acting for the benefit of… Read more »
Waiver of Right to Proceed Against Debtor Did Not Waive Right to Enforce Guaranty
On October 31, 2018, the Second Department issued a decision in Pitsy, LLC v. Rindenow, 2018 NY Slip Op. 07340, holding that a plaintiff’s waiver of claims against a debtor did not waive the plaintiff’s claims to enforce a guaranty against the debtor’s guarantor, explaining: [T]he plaintiff demonstrated its prima facie entitlement to judgment as a… Read more »