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: November 5, 2013

Courts Continue to Wrestle with Standard for Reasonable Reliance in Commercial Contexts

On October 31, 2013, Justice Ramos of the New York County Commercial Division issued a decision in Moshe v. Charles Rutenberg LLC, 2013 NY Slip Op. 51813(U), denying the defendant’s summary judgment motion for dismissal of a fraudulent inducement cross-claim. The cross-claim defendant had argued that the reasonable reliance element of the fraud cross-claim had not… Read more »

Posted: November 5, 2013

Statute of Limitations Not Tolled by Equitable Estoppel

On October 28, 2013, Justice Whelan of the Suffolk County Commercial Division issued a decision in North Coast Outfitters, Ltd. v. Darling, 2013 NY Slip Op. 32731(U), declining to apply the doctrine of equitable estoppel to toll the statute of limitations in a shareholder dispute. Justice Whelan explained: [T]he doctrine of equitable estoppel applies where… Read more »

Posted: November 4, 2013

“Best Efforts” Clause Enforced Notwithstanding Absence of Objective Criteria in Agreement Against Which Efforts Could Be Measured

On October 24, 2013, Justice Friedman of the New York County Commercial Division issued a decision in Glanzer & Co., LLC v. Air Line Pilots Association, 2013 NY Slip Op. 32713(U), denying defendant’s motion for summary judgment dismissing plaintiff’s breach of contract claim after concluding that material issues of fact existed with respect to whether… Read more »

Posted: November 3, 2013

Public Not Third-Party Beneficiary of Lease Between City and Museum

On October 29, 2013, Justice Kornreich of the New York County Commercial Division issued a decision in Saska v. Metropolitan Museum of Art, 2013 NY Slip Op. 23366, addressing, among other things, the law of third-party beneficiaries as applied to the Metropolitan Museum of Art’s “pay what you wish” admissions policy. In Saska, the plaintiffs… Read more »

Posted: November 2, 2013

Failure to Timely Raise Discovery Disputes with the Court Waives Them

On October 21, 2013, Justice Bransten of the New York County Commercial Division issued a decision in Gama Aviation Inc. v. Sandton Capital Partners, LP, 2013 NY Slip Op. 32648(U), showing the importance of dilligently identifying and raising discovery disputes. The Gama Aviation decision dealt with several issues, including two motions to compel the production… Read more »

Posted: November 1, 2013

Insurance Law’s Notice Requirements Strictly Construed

On October 23, 2013, Justice Ramos of the New York County Commercial Division issued a decision in Schoonover v. Massachusetts Mut. Life. Ins. Co., 2013 NY Slip Op. 32682(U), reminding insurance companies that they ignore the notice requirements of the Insurance Law at their peril. In Schoonover, the plaintiffs, trustees of an insurance trust established… Read more »

Posted: October 31, 2013

Existence of Fiduciary Duty Depends on Role in Which Party is Acting

On October 30, 2013, the Second Department issued a decision in Varveris v. Zacharakos, 2013 N.Y. Slip Op. 07028, examining when a corporate officer/director owes a fiduciary duty to the corporation’s shareholders. In Varveris, the defendant was “a director, officer, shareholder, and managing agent of” a close corporation of which plaintiff was a shareholder. Defendant purchased… Read more »

Posted: October 30, 2013

Res Judicata Bars Claims Arising During Prior Lawsuit

On October 29, 2013, the First Department issued a decision in Jumax Assoc. v. 350 Cabrini Owners Corp., 2013 NY Slip Op. 06992, illustrating the scope of the doctrine of res judicata. Jumax had previously commenced an action in 2002 seeking to recover fees that had been paid to defendant co-op pursuant to a license… Read more »

Posted: October 29, 2013

Documentary Evidence Refutes Allegation that Defendant was Party to Contract

On October 16, 2013, the Second Department issued a decision in Kalmon Dolgin Affiliates, Inc. v. Tonacchio, 2013 NY Slip Op. 06660, illustrating the importance of the documentary evidence prong of a motion to dismiss and its usefulness in dismissing a claim at the beginning of an action. In Kalmon Dolgin, the Second Department partially… Read more »