On February 11, 2021, the First Department issued a decision in Suverant LLC v. Brainchild, Inc., 2021 NY Slip Op. 00918, holding that overlapping ownership and common office space alone were insufficient to support a veil piercing claim . . .
Commercial Division Blog
Party Did Not Put Privileged Communications At Issue Where Claims Could be Litigated Without Relying on Privileged Communications
On February 9, 2021, the First Department issued a decision in Securitized Asset Funding 2011-2, Ltd. v. Canadian Imperial Bank of Commerce, 2021 NY Slip Op. 00815, holding that a party did not put privileged communications at issue when its claims could be litigated without relying on those communications . . .
Court Upholds Nail and Mail Service
On February 1, 2021, Justice Borrok of the New York County Commercial Division issued a decision in Ladder Capital Fin. LLC v. Paul, 2021 NY Slip Op. 30321(U), finding that nail and mail service was adequate . . .
Broker’s Dispute Not Covered by FINRA Arbitration Rules
On February 4, 2021, the First Department issued a decision in Matter of Barsanti v. UBS Asset Mgt. (Ams.) Inc., 2021 NY Slip Op. 00616, holding that a broker’s dispute was not covered by FINA’s arbitration rules . . .
Court Erred in Quashing Subpoena Given Broad Scope of Discovery
On February 5, 2021, the Fourth Department issued a decision in M&T Bank Corp. v. Moody’s Invs. Servs., Inc., 2021 NY Slip Op. 00706, holding that a court erred in quashing a subpoena given the broad scope of discovery . . .
Notice to Admit Cannot Request Admissions That Go to the Heart of the Parties’ Dispute
On February 4, 2021, Justice Reed of the New York County Commercial Division issued a decision in 470 4th Ave. Fee Owner, LLC v. Adam Am. LLC, 2021 NY Slip Op. 50090(U), holding that a notice to admit cannot request admissions that go to the heart of the parties’ claims and defenses . . .
Public Policy Bars Enforcement of Arbitration Provision Relating to Amount of Mechanics Lien
On February 1, 2021, Justice Ostrager of the New York County Commercial Division issued a decision in Flowcon, Inc. v. Andiva LLC, 2021 NY Slip Op. 30294(U), refusing to enforce an arbitration provision regarding the amount of a mechanics lien . . .
Forum Selection Clause Mandating Federal Forum Cannot Serve as Basis for Jurisdiction in New York State Court
On January 28, 2021, Justice Cohen of the New York County Commercial Division issued a decision in PBF I Holdings Ltd. v. Valero (Peru) Holdings Ltd., 2021 NY Slip Op. 30289(U), holding that a forum selection clause mandating a forum in the federal courts in New York cannot serve as the basis for jurisdiction in New York state court . . .
Court Should Have Ordered Necessary Parties to be Added to Case Rather Than Dismissing it
On February 3, 2021, the Second Department issued a decision in Ji Juan Lin v. Bo Jin Zhu, 2021 NY Slip Op. 00550, holding that a court should have ordered necessary parties to be added to a lawsuit rather than dismissing it . . .
Sections 11 and 12 Claim Accrual Not Based on When Damages from Drop in Stock Price Occurred
On February 2, 2021, the First Department issued a decision in Matter of Dentsply Sirona, Inc., 2021 NY Slip Op. 00522, holding that Section 11 and 12 claim accrual was not based on when the plaintiffs were injured by the drop in stock price . . .