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Posts Categorized: Contracts

Posted: February 23, 2019

Employer Failed to Justify Injunction Enforcing Restrictive Covenant With Former Employee

On February 7, 2019, the First Department issued a decision in Harris v. Patients Med., P.C., 2019 NY Slip Op. 00974, holding that an employer had failed to justify an injunction enforcing a restrictive covenant with a former employee, explaining: A preliminary injunction is an extraordinary provisional remedy which will only issue where the proponent demonstrates... Read more »

Posted: February 22, 2019

RMBS Trustee’s Failure to Give With Notice to Cure Within Limitations Period Does Not Bar Trustee from Curing Failure and Refiling Suit

On February 19, 2019, the Court of Appeals issued a decision in U.S. Bank Natl. Assn. v. DLJ Mtge. Capital, Inc., 2019 NY Slip Op. 01169, holding that an RMBS “[t]rustee’s failure to comply with the notice and cure or repurchase condition precedent within the applicable statute of limitations does not foreclose refiling of its... Read more »

Posted: February 20, 2019

RMBS Trustee’s Untimely-Filed Complaint Cannot Relate Back to Certificateholder’s Suit on Behalf of Trust, Which Was Barred by Trust’s No Action Clause

On February 19, 2019, the Court of Appeals issued a decision in U.S. Bank Natl. Assn. v. DLJ Mtge. Capital, Inc., 2019 NY Slip Op. 01168, holding that where a party without standing to bring an action on behalf of a trust under the trust’s no action clause timely brings an action on behalf a... Read more »

Posted: February 18, 2019

Even Though Home Improvement Contract Was Unenforceable for Failure to Provide Required Notice, Plaintiff Still Could Recover Value of Work Performed

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 »

Posted: February 11, 2019

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 »

Posted: January 21, 2019

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 »

Posted: January 17, 2019

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 »

Posted: January 16, 2019

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 »

Posted: January 9, 2019

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 »

Posted: December 31, 2018

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 »