Blogs

Commercial Division Blog

Current Developments in the Commercial Divisions of the
New York State Courts by Schlam Stone & Dolan LLP
Posted: October 27, 2020

Motion for Relief Under Article 76 Cannot be Made in an Earlier Action That Has Been Concluded

On September 23, 2020, Justice Masley of the New York County Commercial Division issued a decision in CPI Aerostructures, Inc. v. Air Indus. Group, 2020 NY Slip Op. 33249(U), holding that a motion for relief under Article 76 cannot be made in an earlier action that has been concluded . . .

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Posted: October 25, 2020

Party Cannot Participate in Arbitration Without Challenging Jurisdiction in Court and Then Seek to Vacate Based on Lack of Jurisdiction

On October 9, 2020, Justice Ostrager of the New York County Commercial Division issued a decision in Fava v. Morgan Stanley Smith Barney, Inc., 2020 NY Slip Op. 33358(U), holding that a party cannot participate in an arbitration without challenging its jurisdiction in court and later seek to vacate an award based on lack of jurisdiction . . .

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Posted: October 21, 2020

Provision in Contract Awarding Double Attorneys’ Fees to Prevailing Party is Enforceable

On September 30, 2020, the Second Department issued a decision in Loughlin v. Meghji, 2020 NY Slip Op. 05196, addressing whether a provision in a contract granting a prevailing party in litigation double its attorneys’ fees was valid.  In overturning the trial court’s ruling that such a provision was an unenforceable penalty, the Court confirmed longstanding doctrine that a contract entered into by parties with similar bargaining power should be enforced.

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Posted: October 20, 2020

Court Should Not Have Vacated Default Judgment When Loan Servicer’s Excuse Was “Confusion Regarding the Multiple Cases Filed in Multiple Counties”

On October 14, 2020, the Second Department issued a decision in Insiders Success Ventures, LLC v. Onewest Bank, FSB, 2020 NY Slip Op. 05728, holding that the Supreme Court should not have vacated a default judgment when a loan servicer’s excuse was “confusion regarding the multiple cases filed in multiple counties” . . .

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