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: January 24, 2014

Arbitral Award Confirmed Because it Was Not Irrational

On January 23, 2014, the First Department issued a decision in Ingham v. Thompson, 2014 NY Slip Op. 00436, reversing a trial court order rejecting an arbitral award. The First Department made clear the deferential standard by which a court should review an arbitral award, explaining: Respondents’ arguments that plaintiff should have been disqualified from maintaining the arbitration... Read more »

Posted: January 23, 2014

Director Breaches Fiducary Duty in Selling Corporate Shares to Himself

On December 24, 2013, Justice Whelan of the Suffolk County Commercial Division issued a decision in KNET, Inc. v. Ruocco, 2013 NY Slip Op. 33543(U), addressing the propriety of a director’s sale of additional shares to himself. In KNET, Inc., the court addressed a number of issues, including whether a corporate director breached his fiduciary... Read more »

Posted: January 22, 2014

Law of the Case Doctrine Bars Evidence on Issue Decided in Earlier Appeal

On January 21, 2014, the First Department issued a decision in Gliklad v. Cherney, 2014 NY Slip Op. 00310, affirming the striking of an affirmative defense based on the law of the case doctrine. “In a prior appeal,” the First Department held “that the promissory note” at issue in Gliklad “contained a clause selecting New York as the... Read more »

Posted: January 21, 2014

Condominium Owners not Third-Party Beneficiaries of Contract Between Sponsor and Architect

On January 6, 2014, Justice Demarest of the Kings County Commercial Division issued a decision in Board of Managers of the 125 North 10th Condominium v. 125 North 10, LLC, 2014 NY Slip Op. 50035(U), dismissing a claim by condominium owners for breach of a contract between the building sponsor and an architect. In Board... Read more »

Posted: January 19, 2014

Court of Appeals Agrees to Hear Certified Questions Regarding Unfinished Business Doctrine in Second Action

On December 15, 2013, we posted that on December 12, 2013, the Court of Appeals had accepted certified questions of New York law regarding the unfinished business doctrine from the Second Circuit in In re: Thelen LLP. On January 14, 2014, the Court of Appeals accepted the same certified questions from the Second Circuit in... Read more »

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 »