Blogs

Commercial Division Blog

Current Developments in the Commercial Divisions of the
New York State Courts by Schlam Stone & Dolan LLP
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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Posted: October 19, 2020

Company’s Counterclaims Against Minority Members and Former Executives Dismissed

On October 13, 2020, Justice Vito M. DeStefano of the Commercial Division of the Supreme Court of the State of New York, Nassau County, issued a decision in Stanco and Toomey v. Rallye Motors Holding, LLC, Index No. 612155/2017, dismissing almost all of the counterclaims asserted by the defendant, a holding company for several automobile dealerships (“Rallye”) against its minority members and former senior executives Joseph Stanco and Nicholas Toomey, who are suing the company for violations of their employment agreements as well as the company’s operating agreement. The counterclaims were dismissed on various legal grounds . . .

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