Commercial Division Blog

Current Developments in the Commercial Divisions of the
New York State Courts by Schlam Stone & Dolan LLP

Posts Categorized: Commercial

Posted: March 17, 2020

Labor Law 193 Does Not Apply to Wholesale Withholding of Pay

On February 21, 2020, Justice Scarpulla of the New York County Commercial Division issued a decision in H. Roske & Assoc., LLP v. Burghart, 2020 NY Slip Op. 30497(U), holding that Labor Law Section 193 does not apply to wholesale withholding of pay, explaining: In his second counterclaim Burghart alleges that Counterclaim Defendants refused to... Read more »

Posted: March 16, 2020

Upcoming Arguments in the Court of Appeals in March 2020

Upcoming argument in the Court of Appeals in March 2020 that may be of interest to commercial litigators: American International Specialty Lines Ins. Co. v. Allied Capital Corp. (No. 23) APL-2019-0040 (to be argued Tuesday, March 17) (“Arbitration—Award in Excess of Arbitrator’s Powers—Whether the arbitration panel exceeded its authority when it reconsidered the partial final... Read more »

Posted: March 16, 2020

New York Courts Further Restrict Operations in Response to Coronavirus

Following up on his March 13 memo announcing some limitations on operations in the New York state courts, on March 15, 2020, Chief Administrative Judge Marks issued a memo implementing further restrictions. They are (emphasis added): Effective 5 p.m. on Monday, March 16, we will be postponing all nonessential functions of the courts until further... Read more »

Posted: March 15, 2020

Securities Act Sections 11 and 12 Claims in State Court Not Required to be Plead with Particularity

On February 26, 2020, Justice Scarpulla of the New York County Commercial Division issued a decision in Matter of PPDAI Group Sec. Litig. v. XXX, 2020 NY Slip Op. 50285(U), holding that Securities Act Sections 11 and 12 claims brought in New York state court did not have to be plead with particularity under CPLR... Read more »

Posted: March 14, 2020

Expiration of Statute of Limitations Supports Grant of Motion to Extend Time to Serve

On February 26, 2020, the Second Department issued a decision in BAC Home Loans Servicing, L.P. v. Herbst, 2020 NY Slip Op. 01316, holding that the expiration of the statute of limitations supported granting additional time to serve, explaining: As relevant here, CPLR 306-b provides that service of the summons and complaint shall be made... Read more »

Posted: March 13, 2020

New York State Courts Cancel Jury Trials, Impose Other Limitations in Response to Coronavirus

As other courts have done, the New York state courts have implemented procedures limiting courthouse access in response to public health concerns. The limitations affecting the Commercial Division that take effect on Monday, March 16, 2020, include: Civil jury trials in which opening statements have not commenced shall be postponed until further notice; civil jury... Read more »

Posted: March 13, 2020

Appointment of Separate Counsel Intervening Cause Defeating Malpractice Claim

On February 25, 2020, the First Department issued a decision in Binn v. Muchnick, Golieb & Golieb, P.C., 2020 NY Slip Op. 01302, holding that the appointment of separate counsel was an intervening cause, cutting off a malpractice claim, explaining: Plaintiffs allege that their long-time attorneys, defendants John Golieb, Esq. and Muchnick, Golieb & Golieb,... Read more »

Posted: March 12, 2020

Opportunity to Comment on Proposed Change to Commercial Division Rules

The Office of Court Administration has asked for public comment on a proposed amendment to Rule 31 of the Rules of the Commercial Division (22 NYCRR § 202.70(g), Rule 31). The revisions include: 1) requiring pretrial submissions in Microsoft Word instead of WordPerfect format. 2) changing page limits on memoranda to word limits in order... Read more »