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 25, 2014

Available Damages Against Sponsor of Mortgage-Backed Securities Trust Limited By “Sole Remedies” Provision in Governing Documents

On May 29, 2014, Justice Bransten of the New York County Commercial Division issued a decision in Saco I Trust 2006-5 v. EMC Mortgage LLC, 2014 NY Slip Op. 31432(U), ruling that Plaintiffs’ claim for rescissory and consequential damages was precluded by a “sole remedies” provision in the governing documents for a mortgage-backed securities investment. In Saco I Trust, the... Read more »

Posted: June 24, 2014

Summary Judgment Granted Despite Request for More Discovery

On June 20, 2014, the Fourth Department issued a decision in Resetarits Construction Corp. v. Olmsted, 2014 NY Slip Op. 04633, granting a motion for summary judgment despite the plaintiff’s argument that the motion was premature because the plaintiff had not had an adequate opportunity to take discovery. In Resetarits Construction Corp., the plaintiff sued... Read more »

Posted: June 23, 2014

Commercial Division Rules Amended to Add Rules Regarding Interrogatories

The Chief Administrative Judge has signed an order amending the rules of the Commercial Division by adding a new rule relating to interrogatories. The new rule, Rule 11-a, which took effect on June 2, 2014, provides: Rule 11-a. Interrogatories. (a) Interrogatories are limited to 25 in number, including subparts, unless another limit is specified in the preliminary... Read more »

Posted: June 21, 2014

Investment Bank Not Entitled To Transaction Fee For Acquisition Where Engagement Letter Applied To “Sale, Transfer or other Disposition” of the Company’s Assets

On June 17, 2014, the First Department issued a decision in Miller Tabak + Co., LLC v. Senetek PLC, 2014 NY Slip Op. 04418, reversing the trial court’s grant of summary judgment to an investment bank on a breach of claim, and, by a 4 to 1 majority, granting the defendant’s motion to dismiss the complaint... Read more »

Posted: June 19, 2014

Opportunity to Comment on Proposed Change to Commercial Division Rules

The Office of Court Administration has asked for public comment on yet another proposed change to the rules of the Commercial Division. The proposed new rule would “establish a presumptive limit of 10 depositions for each side and limit the duration of depositions to seven hours per witness.” E-mail comments to by August 19, 2014.

Posted: June 19, 2014

Action Against Referral Service Fails

On June 9, 2014, Justice Sherwood of the New York County Commercial Division issued a decision in Vista Food Exchange, Inc. v. Benefitmall, 2014 NY Slip Op. 31491(U), dismissing an action against a referral/management service. In Vista Food Exchange, the parties’ dispute began when the defendants allegedly referred the plaintiff, a small food wholesaler, to... Read more »

Posted: June 18, 2014

Fraud Claim Dismissed for Lack of Reasonable Reliance Where Sophisticated Plaintiff Failed to Conduct Due Diligence

On June 13, 2014, Justice Ramos of the New York County Commercial Division issued a decision in Phoenix Light SF Ltd. v. Goldman Sachs Group, Inc., 2014 NY Slip Op. 50917(U), dismissing a fraud claim brought by sophisticated investors who alleged misrepresentations in the offering documents for a mortgage-backed securities investment. In Phoenix Light, the... Read more »