On April 22, 2020, Justice Knipel of the Kings County Commercial Division issued a decision in Safir v Charm City House, LLC, 2020 NY Slip Op. 31619(U), holding that tax returns were not discoverable without a strong showing that the information in them was indispensable to a party’s case, explaining: Contrary to defendants’ contention, they... Read more »
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Commercial Division Blog
Posts Categorized: Commercial
Securities Act Section 11 and 12 Claims Not Subject to Heightened CPLR 3016 Pleading Standards
On June 2, 2020, Justice Borrok of the New York Commercial Division issued a decision in Matter of Netshoes Sec. Litig. v. XXX, 2020 NY Slip Op. 20123, holding that Securities Act Section 11 and 12 claims are not subject to heightened CPLR 3016 pleading standards, explaining: As they did in Netshoes I, the defendants... Read more »
Economic Duress Not a Defense for At-Will Employees Who Sign Contracts Under Threat of Termination
A recent Commercial Division ruling analyzed whether an at-will employee can raise the affirmative defense of economic duress when his or her employer threatens to terminate the employee for refusal to sign a contract. In concurrence with existing New York precedent, the court concluded that because an employer may terminate an at-will employee at any... Read more »
Trust Entitled to Fees in RMBS Put-Back Action Based on Representation and Warranty Breaches
On May 25, 2020, Justice Friedman of the New York County Commercial Division issued a decision in Part 60 Put-Back Litigation, 2020 NY Slip Op. 31693(U), holding that a trustee can obtain attorneys’ fees from a seller in an RMBS put-back action based on representation and warranty breaches, but not deciding whether fees would be... Read more »
Nonsignatories Bound by Arbitration Provisions in Contract They Relied Upon in Asserting Claims
On May 29, 2020, Justice Ostrager of the New York County Commercial Division issued a decision in 2004 Parker Family LP v. BDO USA LLP, 2020 NY Slip Op. 50614(U), holding that non-signatories were bound by an arbitration provision in a contract upon which they had relied in asserting claims, explaining: As the First Department... Read more »
Maintaining and Using Disputed Property Insufficient, Without More, to Support Claim for Adverse Possession
On June 3, 2020, the Second Department issued a decision in Finger v. 162 Grand St. Realty, LLC, 2020 NY Slip Op. 03098, holding that maintaining and using disputed property was insufficient, without more, to support a claim for adverse possession, explaining: A party seeking to obtain title by adverse possession must prove by clear... Read more »
Tortious Interference Claim Accrues When Plaintiff First Damaged
On June 4, 2020, the First Department issued a decision in Linkable Networks, Inc. v Mastercard Inc., 2020 NY Slip Op. 03187, holding that a tortious interference claim accrues when the plaintiff is first damaged, explaining: The statute of limitations for tortious interference with prospective business relations is three years from the date of injury,... Read more »
Failure to Make Timely and Particular Objections Waives Objections Not Based on Privilege or Palpable Impropriety
On June 18, 2020, the First Department issued a decision in Khatskevich v. Victor, 2020 N.Y. App. Div. LEXIS 3555, reversing a decision by the Supreme Court, New York County, denying a motion to compel a party’s “T-Visa” application, since any objections to the request for the application based upon grounds other than privilege or... Read more »
Plaintiff States Claim for Breach of Obligation to Negotiate in Good Faith
On April 21, 2020, Justice Cohen of the New York County Commercial Division issued a decision in Sonenshine Partners LLC v. Duravant LLC, 2020 NY Slip Op. 31574(U), holding that a plaintiff had stated a claim for breach of an obligation to negotiate in good faith, explaining: To state a viable claim for breach of... Read more »
Defendants Who Are Not Statutory Sellers Not Liable for Section 12 Claims Even Though They Were Primary Beneficiaries of Stock Sale
On April 22, 2020, Justice Schecter of the New York County Commercial Division issued a decision in International Union of Operating Engr. Benefit Funds of E. Pa. and Del. v. Camping World Holdings, Inc., 2020 NY Slip Op. 31560(U), holding that defendants who are not statutory sellers are not liable for Section 12 claims event... Read more »