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: October 17, 2019

Broad Arbitration Clause Covers Claims Arising in Contract, Quasi-Contract and Tort

On October 4, 2019, Justice Schecter of the New York County Commercial Division issued a decision in Broumand v. Abbot, 2019 NY Slip Op. 32938(U), holding that a broad arbitration clause covered claims arising in contract, quasi-contract and tort, explaining: The Federal Arbitration Act (FAA) applies because Broumand’s claims involve interstate commerce. Matters concerning companies’... Read more »

Posted: October 15, 2019

Plaintiff May Not Move to Amend Complaint After Complaint Has Been Dismissed

On October 1, 2019, the First Department issued a decision in Tanner v. Stack, 2019 NY Slip Op. 07039, holding that a plaintiff may not move to amend a complaint after that complaint has been dismissed, explaining: By the time plaintiff moved for leave to amend, the original complaint had already been dismissed; hence, there... Read more »

Posted: October 14, 2019

Faithless Servant Claim Requires Defendant to Have Acted Directly Against Employer’s Interests as in Embezzlement, Improperly Competing or Usurping Business Opportunities

On October 1, 2019, the First Department issued a decision in Bluebanana Group v. Sargent, 2019 NY Slip Op. 07014, holding that a faithless servant claim requires that the employee-defendant acted directly against the employer’s interests, explaining: Plaintiffs have failed to state a cognizable claim for breach of the duty of loyalty, which requires the... Read more »

Posted: October 13, 2019

Fraud Claim Cannot be Based on Alleged Intention Not to Perform Contract

On September 25, 2019, Justice Sherwood of the New York County Commercial Division issued a decision in Roy Food & Wine LLC v. Meregalli, 2019 NY Slip Op. 32875(U), dismissing a fraud claim based on an alleged misrepresentation of an intention to perform a contract, explaining: To state a cause of action for fraud, a... Read more »

Posted: October 12, 2019

Court Dismisses Federal Securities Fraud Claims

On September 26, 2019, Justice Scarpulla of the New York County Commercial Division issued a decision in Matter of Densply Sirona, Inc. v. XXX, 2019 NY Slip Op. 32849(U), dismissing federal securities fraud claims, explaining: I find that Plaintiffs’ statements concerning competition and the scope and prospects of Dentsply’s and Sirona’s business are expressions of... Read more »

Posted: October 9, 2019

Derivative and Individual Claims Based on Same Facts Cannot be Brought in Same Action

On September 23, 2019, Justice Scarpulla of the New York County Commercial Division issued a decision in Jobar Holding Corp. v. Halio, 2019 NY Slip Op. 32813(U), holding that derivative and direct claims based on the same facts cannot be brought in the same action, explaining: Although the complaint is rife with allegations that a... Read more »