Commercial Division Blog

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

Posts Categorized: Commercial

Posted: January 18, 2014

Second Circuit Asks Court of Appeals to Clarify Application of “Separate Entity Rule” to Post-Judgment Enforcement Proceedings

On January 14, 2014, in Tire Engineering & Distribution, L.L.C., et al. v. Bank of China Ltd., and Motorola Credit Corp. v. Standard Chartered Bank, the Second Circuit certified questions to the New York Court of Appeals concerning the application of the “separate entity rule” to post-judgment enforcement proceedings under CPLR Article 52. Under a long-standing judge-made... Read more »

Posted: January 17, 2014

Lost Profits Damages Not Available on Fraudulent Inducement Claim

On January 6, 2014, Justice Bransten of the New York County Commercial Division issued a decision in Maesa LLC v. Jouer Cosmetics LLC, 2014 NY Slip Op. 30026(U), dismissing a counterclaim for fraudulent inducement to the extent it sought lost profits damages. In Maesa, the parties entered into a contract under which the plaintiff manufactured vials in... Read more »

Posted: January 16, 2014

Contract Claim Dismissed For Failure to Plead Non-Speculative Damages

On January 2, 2014, Justice Kornreich of the New York County Commercial Division issued a decision in Saxon Technologies, LLC v. Wesley Clover Solutions-North America, Inc., 2014 NY Slip Op. 30002(U), dismissing a breach of contract claim for failure adequately to plead damages. In Saxon Technologies, the plaintiff’s allegations included that the defendant had breached... Read more »

Posted: January 15, 2014

Schlam Stone & Dolan Partner Jeffrey Eilender to Speak at State Bar Panel on The Interplay of Delaware and New York Law in Resolving Corporate and Commercial Disputes

On January 29, 2014, Schlam Stone & Dolan partner Jeffrey M. Eilender will be a panelist in a CLE program hosted by the Commercial and Federal Litigation Section of the New York State Bar Association. The panel will be held in conjunction with the association’s annual meeting at the Hilton Hotel in Manhattan. The topic of the panel... Read more »

Posted: January 15, 2014

New York Choice of Law Provision Does Not Preclude Massachusetts Statutory Claim

On December 11, 2013, Justice Walker of the 8th Judicial District Commercial Division issued a decision in Melia v. Zenhire, Inc., 2013 NY Slip Op. 52254(U), addressing the intersection between a choice-of-law clause, a choice-of-forum clause, and a statutory cause of action. In Melia, the plaintiff signed an employment agreement with defendants that provided for... Read more »

Posted: January 14, 2014

Court of Appeals Arguments of Interest for the Week of January 13, 2014

Arguments this week in the Court of Appeals that may be of interest to Commercial Division practitioners include: Docket No. 21: Country-Wide Insurance Company v. Preferred Trucking Services Corp. (To be argued on Wednesday, January 15, 2014) (concerning the timeliness of a liability carrier’s disclaimer of coverage based on the insured’s non-cooperation in the defense). See the... Read more »

Posted: January 13, 2014

Quantum Meruit Claim Dismissed Where Defendant Benefited From, But Did Not Induce, Plaintiff’s Performance

On December 19, 2013, Justice Bransten of the New York County Commercial Division issued a decision in Von Lavrinoff v. Laufer, 2013 NY Slip Op. 33447(U), dismissing a quantum meruit claim against an entity that allegedly benefited from the plaintiff’s services but did not induce plaintiff’s performance. In Von Lavrinoff, the plaintiff alleged that he and... Read more »

Posted: January 12, 2014

Derivative Claim Dismissed for Failure to Allege Demand Futility with Particularity

On January 6, 2014, Justice Bransten of the New York County Commercial Division issued a decision in Zacharius v. Kensington Publishing Corp., 2014 NY Slip Op. 50011(U), addressing a number of business divorce issues, including the standard for pleading demand futility. Zacharius involved a dispute between shareholders in a closely held corporation. The court’s decision in... Read more »

Posted: January 11, 2014

No At Issue Waiver of Privilege When Party Chooses Not to Use Privileged Documents in Litigation

On December 30, 2013, Justice Kornreich of the New York County Commercial Division issued a decision in Old Republic Insurance Co. v. United National Insurance Co., 2013 NY Slip Op. 33423(U), discussing the “at issue” waiver doctrine. In Old Republic, the defendant moved for “the production of attorney communications” relevant to the oral contract that the... Read more »