Posts Categorized: Damages

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 »

Posted: October 15, 2014

Economic Loss Rule Precludes Tort Claims For Purely Economic Losses Arising From Defective Product

On October 1, 2014, the Second Department issued a decision in 126 Newton St., LLC v. Allbrand Commercial Windows & Doors, Inc., 2014 NY Slip Op 06563, applying the “economic loss rule” to bar the plaintiff (a “downstream purchaser” of a product) from recovering tort damages for economic losses resulting from a defect in the... Read more »

Posted: July 15, 2014

Consequential Damages Not Available When Not Contemplated at the Time of Contracting

On July 2, 2014, Justice Schweitzer of the New York County Commercial Division issued a decision in Rampart Brokerage Corp. v. Ribs NY LLC, 2014 NY Slip Op. 31772(U), dismissing the plaintiff’s damages claim to the extent it sought consequential damages. In Rampart Brokerage Corp., the defendants allegedly mislead the plaintiff and its clients “as to which... Read more »

Posted: July 12, 2014

Claims Dismissed for Failure to Present Evidence of Proximate Causation

On June 30, 2014, Justice Sherwood of the New York County Commercial Division issued a decision in Mizrahi v. Adler, 2014 NY Slip Op. 31701(U), granting defendants summary judgment dismissing the complaint because the plaintiff could not show that the defendants’ misconduct caused his damages. In Mizrahi, the plaintiff asserted legal malpractice, fraud and other... Read more »

Posted: June 29, 2014

Breach of Contract Claim Survives Because Nominal Damages Satisfy Damages Element of Claim

On June 19, 2014, Justice Schweitzer of the New York County Commercial Division issued a decision in 37 East 50th St. Corp. v. Restaurant Group Management Services, LLC, 2014 NY Slip Op. 31595(U), holding that nominal damages are sufficient to support a claim for breach of contract. In 37 East 50th St. Corp., the parties... Read more »