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: July 22, 2019

Negligence Claim Cannot Be Based on Alleged Failure Adequately to Perform Contractual Duties

On July 9, 2019, Justice Borrok of the New York County Commercial Division issued a decision in Cornice LLC v. 2LS Consul Ting Eng’g, D.P.C., 2019 NY Slip Op. 31964(U), holding that a negligence claim cannot be based on an alleged failure adequately to perform contractual duties, explaining: However, the second cause of action grounded... Read more »

Posted: July 21, 2019

Party Not Entitled to Fees on Fees

On July 8, 2019, Justice Scapulla of the New York County Commercial Division issued a decision in Park Union Condominium v. 910 Union St., LLC, 2019 NY Slip Op. 31994(U), holding that a prevailing party was not entitled to fees on fees, explaining: Plaintiffs argue that the Referee Report’s award of $34,200 for Plaintiffs’ hearing... Read more »

Posted: July 20, 2019

Shareholders Did Not Breach Duty to Company by Operating Competing Companies

On July 10, 2019, the Second Department issued a decision in Laffey v. Laffey, 2019 NY Slip Op. 05521, holding that shareholders did not breach a duty to their company by operating competing companies, explaining: Under the unusual circumstances presented, we agree with the Supreme Court’s determination dismissing Emmett’s counterclaim and cause of action alleging... Read more »

Posted: July 16, 2019

When There is Question Regarding Whether a Party Signed Agreement With Arbitration Clause, Question of Arbitrability is for Court, Not Arbitrator, to Decide

On June 27, 2019, Justice Borrok of the New York County Commercial Division issued a decision in Suratwala v. Gandhi, 2019 NY Slip Op. 31859(U), holding that when there is a question regarding whether a party signed an agreement containing an arbitration clause, the question of arbitrability is for the court, not the arbitrator, to... Read more »

Posted: July 15, 2019

Fraud Claims Not Duplicative of Malpractice Claims

On June 27, 2019, Justice Scarpulla of the New York County Commercial Division issued a decision in Kislev Partners, LLP v. Sidley LLP, 2019 NY Slip Op. 31850(U), declining to dismiss fraud claims as duplicative of a malpractice claim, explaining: Sidley argues that plaintiffs’ claims all essentially sound in professional malpractice and, therefore, have a... Read more »

Posted: July 14, 2019

Shareholders and Directors Not Liable for Breach of Company’s Contractual Obligations

On June 28, 2019, Justice Cohen of the New York County Commercial Division issued a decision in Town & Country Adult Living, Inc. v. Hearth at Mount Kisco, LLC, 2019 NY Slip Op. 31862(U), holding that a company’s shareholders and directors could not be held liable for the company’s breach of its contractual obligations, explaining:... Read more »

Posted: July 11, 2019

Court Refuses to Impose PSLRA Stay on Securities Act Action Pending in Commercial Division

On July 1, 2019, Justice Scarpulla of the New York County Commercial Division issued a decision in Matter of PPDAI Group Sec. Litig., 2019 NY Slip Op. 51075(U), refusing to impose a PSLRA stay on a Securities Act action pending in the Commercial Division, explaining: According to Moving Defendants, Plaintiffs should not be permitted to... Read more »