On February 8, 2019, the Fourth Department issued a decision in Weiss v. Zellar Homes, Ltd., 2019 NY Slip Op. 01024, holding that even though a home improvement contract was unenforceable, the defendant still could recover the reasonable value of the work it performed, explaining: We agree with plaintiffs on their appeal that Supreme Court erred... Read more »
Blogs
Posts Categorized: Contracts
Letter of Intent Binding Contract Requiring Parties to Negotiate and Consummate Sale Transaction
On January 28, 2019, Justice Ash of the Kings County Commercial Division issued a decision in A.J. Richard & Sons, Inc. v. Forest City Ratner Cos., LLC, 2019 NY Slip Op. 30215(U),holding that a letter of intent was a binding agreement to negotiate and consummate a sale transaction, explaining: In determining whether the parties intended to... Read more »
Even Though Contract Gave the Defendant Discretion to Calculate Losses on Sale, it Was Required to Exercise That Discretion Reasonably
On January 17, 2019, the First Department issued a decision in Lehman Bros. Intl. (Europe)(in administration) v. AG Fin. Prods., Inc., 2019 NY Slip Op. 00364, holding that even though a contract gave the defendant the discretion to take certain acts, it had to exercise that discretion reasonably, explaining: Despite the discretion afforded to defendant under... Read more »
Court Rejects Defense That Arbitration Agreement Was Signed Under Duress
On January 4, 2019, Justice Scarpulla of the New York County Commercial Division issued a decision in Kahan Jewelry Corp. v. First Class Trading, L.P., 2019 NY Slip Op. 30039(U), rejecting a defense that an arbitration agreement was signed under duress, explaining: It is well settled that repudiation of an agreement on the ground that it... Read more »
Subcontractor Prevails on Lien Law Claim
On January 9, 2019, the Second Department issued a decision in C.C.C. Renovations, Inc. v. Victoria Towers Dev. Corp., 2019 NY Slip Op. 00089, holding that a subcontractor should have prevailed on a Lien Law claim, explaining: Lien Law § 3 provides that a contractor who performs labor or furnishes materials for the improvement of real property... Read more »
Questions of Fact Preclude Summary Judgment on Claim for Deletion of Work in Construction Contract
On December 28, 2018, Justice Bransten of the New York County Commercial Division issued a decision in Graciano Corp. v. Lanmark Group, Inc., 2018 NY Slip Op. 33388(U), holding that questions of fact precluded summary judgment on a claim for deletion of work from a construction contract, explaining: Graciano argues that it was justified in stopping work... Read more »
Memorandum of Understanding Found to be Unenforceable Agreement to Agree in the Future on Terms Rather Than Binding Contract
On December 20, 2018, the Third Department issued a decision in Doller v. Prescott, 2018 NY Slip Op. 08733, holding that a memorandum of understanding was an unenforceable agreement to agree in the future on terms rather than a binding contract, explaining: Plaintiff’s first, second, fifth and seventh causes of action for breach of contract, fraud,... Read more »
E&O Policy May Cover Amounts Employer Was Required to Pay Because of Executive Director’s Negligent Administration of Retirement Accounts
On November 30, 2018, Judge Kahn of the NDNY issued a decision in Young Men’s Christian Ass’n of Plattsburgh v. Philadelphia Indem. Ins. Co., Case No. 18-cv-0565 (KEK/DJS), denying an E&O insurer’s motion to dismiss the insured’s claim for amounts it was required to contribute to employee retirement accounts because of the insured’s negligent failure to withdraw contributions from the employees’ paychecks.... Read more »
Option Unenforceable Due to Unreasonable Delay in Exercising It
On December 12, 2018, the Second Department issued a decision in Breslin v. Frankel, 2018 NY Slip Op. 08456, holding that an option was unenforceable because of an unreasonable delay in exercising it, explaining: An option contract is an agreement, in exchange for consideration, to hold an offer open, thereby conferring upon the optionee the right... Read more »
Court Refuses to Consider Parol Evidence in Interpreting Document Granting Easement
On December 4, 2018, Justice Bransten of the New York County Commercial Division issued a decision in 101 H 216 Lafayette, LLC v. J&G Family L.P., 2018 NY Slip Op. 33107(U), refusing to consider parol evidence in interpreting a document granting an easement, explaining: Express easements are defined by the intent, or object, of the parties.... Read more »