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: June 25, 2020

Tax Returns Not Discoverable Without Strong Showing That Information is Indispensable

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 »

Posted: June 23, 2020

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 »

Posted: June 23, 2020

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 »

Posted: June 22, 2020

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 »

Posted: June 21, 2020

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 »

Posted: June 20, 2020

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 »

Posted: June 19, 2020

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 »

Posted: June 17, 2020

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 »