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Posts Categorized: Damages

Posted: August 26, 2015

Damages for Breach of “Agreement to Agree” Limited to Out-of-Pocket Expenses

On August 17, 2015, Justice Kornreich of the New York County Commercial Division issued a decision in DOLP 1133 Props. II LLC v. Amazon Corporate, LLC, 2015 NY Slip Op. 31544(U), dismissing claims for specific performance and lost profits in connection with an alleged breach of an agreement to negotiate a lease. In DOLP 1133... Read more »

Posted: August 10, 2015

Prohibition on Delay Damages Enforced Absent Bad Faith, Willful Misconduct or Gross Negligence

On July 30, 2015, the Third Department issued a decision in Tougher Industries, Inc. v. Dormitory Authority of the State of N.Y., 2015 NY Slip Op. 06388, enforcing a prohibition on the award of delay damages in a construction contract. In Tougher Industries, the “plaintiff contracted with defendant to be the prime contractor in charge... Read more »

Posted: August 7, 2015

Fraud Claim Dismissed Because Claimed Damages Violated Out-of-Pocket Rule

On July 24, 2015, Justice Scarpulla of the New York County Commercial Division issued a decision in Kumiva Group, LLC v. Garda USA Inc., 2015 NY Slip Op. 31388(U), dismissing a fraud claim based on the out-of-pocket rule. In Kumiva Group, the plaintiff sued the defendant in connection with the defendant’s acquisition of an armored... Read more »

Posted: March 14, 2015

Court Analyzes Damages For Which Enjoined Party May Recover

On February 27, 2015, Justice Demarest of the Kings County Commercial Division issued a decision in Metropolitan Lofts of NY, LLC v. Metroeb Realty 1, LLC, 2015 NY Slip Op. 50251(U), awarding the plaintiff the proceeds of the bond for the damages it sustained by reason of a preliminary injunction. In Metropolitan Lofts, the plaintiff... Read more »

Posted: February 5, 2015

Damages in Derivative Action Must go to Corporation, Not Plaintiff

On January 28, 2015, the Second Department issued a decision in Sakow v. Waldman, 2015 NY Slip Op. 00742, regarding the distribution of a damages award in a derivative action. In Sakow, the plaintiff, who brought an action both individually and derivativly regarding the management of a real estate investment, prevailed at trial and was... Read more »

Posted: January 29, 2015

First Department Affirms Injunction Pending Arbitration Based, In Part, On Agreement Limiting Damages

On January 22, 2015, the First Department issued a decision in Matter of Rockwood Pigments NA, Inc. v. Elementis Chromium LP, 2015 NY Slip Op. 00612, affirming the grant of a preliminary injunction prohibiting the termination of a distributorship agreement pending arbitration of the parties’ dispute. This post focuses on one aspect of the Rockwood... Read more »

Posted: January 20, 2015

Consequential Damages Claim Dismissed Because Such Damages Not Contemplated at Time of Contracting

On January 14, 2015, Justice Friedman of the New York County Commercial Division issued a decision in ERC 16W L.P. v. Xanadu Mezz Holdings LLC, 2015 NY Slip Op. 50035(U), dismissing a claim for consequential damages. In ERC 16W L.P., the plaintiff sought, among other things, consequential damages on its claim for breach of contract.... Read more »