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: March 17, 2019

Business Valuation Not Protected by Attorney-Client Privilege

On February 28, 2019, the Third Department issued a decision in Galasso v. Cobleskill Stone Prods., Inc., 2019 NY Slip Op. 01483, holding that a business valuation was not protected by the attorney-client privilege, explaining: The attorney-client privilege shields from disclosure any confidential communications between an attorney and his or her client made for the purpose... Read more »

Posted: March 16, 2019

Claim Time-Barred Because it Was Not Assigned to Plaintiff Until After Statute of Limitations Had Run

On February 28, 2019, the First Department issued a decision in Rizack v. Signature Bank, N.A., 2019 NY Slip Op. 01494, holding that a claim was time-barred because it was not assigned to the plaintiff until after the statute of limitations had run, explaining: In September 2007, West End Financial Advisors LLC entered into a... Read more »

Posted: March 15, 2019

Lease’s Rent Credit Provision Unenforceable Penalty

On February 28, 2019, the First Department issued a decision in Free People of PA LLC v. Delshah 60 Ninth, LLC, 2019 NY Slip Op. 01505, holding that a lease’s rent credit was an unenforceable penalty, explaining: The trial court correctly determined, giving due consideration to the nature of the contract and the circumstances, that the... Read more »

Posted: March 14, 2019

Qualified Privilege Bars Defamation Claim

On February 26, 2019, the First Department issued a decision in L.Y.E. Diamonds, Ltd. v. Gemological Inst. of Am., Inc., 2019 NY Slip Op. 01360, holding that a defamation claim was barred by qualified privilege, explaining: The motion court correctly dismissed, pursuant to CPLR 3211(a)(1), the defamation and trade libel causes of action on the... Read more »

Posted: March 13, 2019

Attorney Fee Provision Entitling Plaintiff to Fees Equaling One Third of Award Unenforceable

On February 20, 2019, Justice Cohen of the New York County Commercial Division issued a decision in Julius Silvert, Inc. v. Open Kitchen 17, LLC, 2019 NY Slip Op. 30394(U), holding that an attorney fee provision entitling the plaintiff to one third of the award to it for attorneys’ fees was unenforceable, explaining: By contrast, Plaintiffs demand... Read more »

Posted: March 12, 2019

Stipulation to Support Class Action Settlement Unenforceable

On February 14, 2019, the First Department issued a decision in Cohen v. Saks Inc., 2019 NY Slip Op. 01162, holding that a stipulation to support a class action settlement was unenforceable, explaining: While plaintiffs’ promise to support the stipulation and cooperate in seeking court approval is not an unenforceable statement of intention to do something in... Read more »

Posted: March 11, 2019

Court Clarifies Rules Regarding Accrual of RMBS “Failure to Notify” Put-Back Claims

On February 15, 2019, Justice Friedman of the New York County Commercial Division issued a decision in HSBC Bank USA, N.A. v. Merrill Lynch Mtge. Lending, Inc., 2019 NY Slip Op. 30358(U), clarifying the rules for the accrual of RMBS failure-to-notify put-back claims, explaining: The court adheres to its holding that accrual of a failure lo... Read more »

Posted: March 10, 2019

Defendant Waived Lack of Personal Jurisdiction Defense By Bringing Earlier, Related Action

On February 19, 2019, Justice Scarpulla of the New York County Commercial Division issued a decision in Magomedov v. Lebedev, 2019 NY Slip Op. 30378(U), holding that a defendant waived his defense of lack of personal jurisdiction by bringing an earlier, related action, explaining: Lebedev first argues that this action should be dismissed against him because... Read more »

Posted: March 9, 2019

Defendant Granted Default Judgment on its Counterclaims Against Plaintiff

On February 8, 2019, Justice Masley of the New York County Commercial Division issued a decision in K’s Intl. Polybags Mfg. Ltd. v. M.T. Packaging Inc., 2019 NY Slip Op. 30333(U), granting a defendant default judgment on its counterclaims against a plaintiff, explaining: When a defendant has failed to appear, plead or proceed to trial of... Read more »

Posted: March 8, 2019

Claims Not Barred by Collateral Estoppel or Res Judicata Because They Had Not Matured When First Action Brought

On February 13, 2019, Justice Cohen of the New York County Commercial Division issued a decision in Triantafillakis v. Madden, 2019 NY Slip Op. 30355(U), holding that the plaintiff’s claims were not barred by collateral estoppel or res judicata because the claims had not accrued when the first action was brought, explaining: Plaintiffs’ claims are not... Read more »