On March 6, 2014, Justice Friedman of the New York County Commercial Division issued a decision in New York City Housing Authority v. Spectrum Contracting Group, Inc., 2014 NY Slip Op. 30568(U), illustrating the application of CPLR 5001 in computing pre-judgment interest. CPLR 5001(b) provides the rule for determining the date from which pre-judgment interrest is computed: (b)... Read more »
Blogs
Commercial Division Blog
Posts Categorized: Commercial
Lack of Sophistication No Excuse for Not Bringing Action Before Statute of Limitations Runs
On March 11, 2014, the First Department issued a decision in Apt v. Morgan Stanley DW, Inc., 2014 NY Slip Op. 01541, examining the application of the statute of limitations and discovery rules relating to fraud. In Apt, an employee of the defendants “allegedly churned trades on” a brokerage account. The First Department affirmed the... Read more »
For Insurance Purposes, Cash is “In Transit” Even While it is Being Held in the Carrier’s Vault
On March 11, 2014, the First Department issued a decision in CashZone Check Cashing Corp. v. Vigilant Insurance Co., 2014 NY Slip Op. 01565, finding that money embezzled from an armored car service’s vault was nonetheless “in transit” for purposes of insurance coverage. CashZone Check Cashing arose out of the embezzlement of money being delivered to the... Read more »
No Separate Cause of Action For Insurance Carrier’s Bad Faith Claims Handling
On February 26, 2014, Justice Schweitzer of the New York County Commercial Division issued a decision in Orient Overseas Associates v. XL Insurance America, Inc., 2014 NY Slip Op. 30488(U), dismissing a claim against a property insurance carrier for “bad faith claims handling” on the ground that no such cause of action exists under New... Read more »
Person Who Signs Contract on Behalf of Non-Existent Entity Personally Liable
On March 11, 2014, the First Department entered a decision in Sunquest Enterprises, Inc. v. Zar, 2014 NY Slip Op. 01551, addressing the issue of a contract entered into by an allegedly non-existent entity. In Sunquest Enterprises, the court examined the question of whether defendants who signed a contract on behalf of a non-existent entity were personally liable... Read more »
Lawyer’s “Stalking” of Jurors Leads to Mistrial
On March 5, 2014, Justice Karalunas of the Onondaga County Commercial Division issued a decision in Varano v. FORBA Holdings, LLC, 2014 NY Slip Op. 50312(U), addressing inappropriate counsel contact with jurors. We have excerpted Justice Karalunas’s opinion below. We think the practice tips are plain: In a decision dated November 18, 2013 and order dated... Read more »
Findings In SEC and NYSE Administrative Orders Do Not Trigger Dishonest Act Exclusion Under Professional Liability Policy
On February 28, 2014, Justice Ramos of the New York County Commercial Division issued a decision in J.P. Morgan Securities Inc. v. Vigilant Insurance Co., 2014 NY Slip Op. 50284(U), ruling that administrative orders by the SEC and a New York Stock Exchange hearing panel did not constitute a “judgment or other final adjudication” sufficient to trigger... Read more »
Second Department Finds Private Right of Action Under Prompt Pay Law
On March 5, 2014, the Second Department issued a decision in Maimonides Medical Center v. First United American Life Insurance Co., 2014 NY Slip Op. 01441, examining whether there is a private right of action against insurers under Insurance Law § 3224-a (the Prompt Pay Law). In Maimonides Medical Center, the Second Department held that... Read more »
Court Identifies Elements of Claim for Aiding and Abetting Undue Influence
On February 28, 2014, Justice Scarpulla of the New York County Commercial Division issued a decision in Goldberg v. HSBC Securities (USA), Inc., 2014 NY Slip Op. 30481(U), examining the elements of a claim of aiding and abetting undue influence. In Goldberg, the executor of an estate brought claims related to alleged undue influence over... Read more »
Standard for Pre-Award Attachment Under CPLR 7502(c) is that Award Must Otherwise Be “Rendered Ineffectual”
On March 6, 2014, the First Department issued a decision in Matter of Kadish v. First Midwest Securities, Inc., 2014 NY Slip Op. 01517, addressing the standard in deciding motions for CPLR 7502(c) attachments. In Matter of Kadish, the First Department addressed whether, in addition to the grounds stated in CPLR 7502(c)–that without the attachment, the award will... Read more »