Current Developments in the Commercial Divisions of the
New York State Courts by Schlam Stone & Dolan LLP
Posted: February 22, 2014
On December 11, 2013, Justice Schmidt of the Kings County Commercial Division issued a decision in Corona Treasures LLC v. Star Home Designs, LLC, 2013 NY Slip Op. 52294(U), denying in part a motion to dismiss because of factual questions regarding whether some defendants were "sellers" for purposes of the UCC.
Corona Treasures arose from the breakdown of an agreement by the plaintiff to purchase merchandise from India. Some of the defendants (Universal, the Indian defendant who was the underlying seller, did not join them) moved to dismiss on the ground that because the agreement concerned the sale of goods, UCC § 2-725(1)'s 4-year statute of limitations applied instead of the 6-year limitations period for breach of contract actions. In opposition, the plaintiff asserted that the only "seller" in the relationship was Universal, and that the movants were intermediaries who were paid to facilitate or arrange the plaintiff's relationship with Universal.
The court found that, because there were issues of fact as to whether the movants were "sellers," they had not carried their initial burden of establishing that the statute of limitations had expired:
Posted: February 21, 2014
Transcripts and videos of arguments in the Court of Appeals for the week of February 10, 2014, are now available on the Court of Appeals website.
On February 10, 2014, we noted one case of interest from the oral arguments for the week of February 10, 2014:
Posted: February 21, 2014
On February 19, 2014, the Second Department issued a decision in Willer v. Kleinman, 2014 NY Slip Op. 01164, reversing a trial court order compelling arbitration and instead finding that while the parties were bound by their oral agreement to arbitrate, the defendant had waived its rights under that oral agreement. (more…)
Posted: February 20, 2014
Justice Ramos of the New York County Commercial Division recently updated his Individual Practices.
Posted: February 20, 2014
On February 18, 2014, the First Department issued a decision in Orchard Hotel, LLC v. D.A.B. Group, LLC, 2014 NY Slip Op. 01107, reversing a trial court's grant of a motion for renewal.
In Orchard Hotel, the trial court granted the defendant's motion for renewal, reinstating its counterclaims. The First Department reversed, both because it found the defendant's new evidence to be without merit and because the defendant should have offered it in the original motion, explaining:
Posted: February 19, 2014
On February 6, 2014, Justice Schweitzer of the New York County Commercial Division issued a decision in Eden Roc, LLLP v. Marriott International, Inc., 2014 NY Slip Op. 30377(U), granting a motion for reargument.
In Eden Roc, the trial court denied the defendants' motion to dismiss with respect to the plaintiff's cause of action for an accounting. The defendants moved for reargument on the ground that the court had not addressed their arguments on the accounting point. The court granted reargument, explaining:
Posted: February 18, 2014
On February 18, 2014, the First Department issued a decision in SunLight General Capital LLC v. CJS Investments Inc., 2014 NY Slip Op. 01118, affirming a dismissal for lack of personal jurisdiction.
In SunLight General Capital, the defendants, "CJS" and "Clean Solar," were "New Jersey entities, with offices and employees located solely within the State of New Jersey, and whose alleged actions herein occurred with the State of New Jersey." The trial court dismissed the plaintiff's claims for lack of personal jurisdiction. The First Department affirmed, explaining:
Posted: February 17, 2014
On February 5, 2014, New York County Commercial Division Justice Friedman issued a decision in W.S. Corp. v. Cullen and Dykman LLP, 2014 NY Slip Op. 30353(U), denying a motion for change of venue from New York County to Nassau County.
In W.S. Corp., the court granted in part a motion to dismiss former clients' legal malpractice claims against a law firm. This post focuses on a separate, procedural issue: the defendant's motion to change venue from New York County to Nassau County. The court denied the motion in an opinion that should be instructive to any counsel arguing for a change of venue of the approximately 20 miles between the New York County and Nassau County Courthouses:
Posted: February 16, 2014
On February 13, 2014, the First Department issued a decision in Nomura Asset Capital Corp. v. Cadwalader, Wickersham & Taft LLP, 2014 NY Slip Op. 00954, affirming in part a trial court's denial of the defendant law firm's motion for summary judgment on a legal malpractice claim. In Nomura Asset Capital Corp., the plaintiff sued the law firm that advised
Posted: February 15, 2014
On February 4, 2014, Justice Oing of the New York County Commercial Division issued a decision in Pope Investments II LLC v. Belmont Partners, LLC, 2014 NY Slip Op. 30349(U), dismissing a legal malpractice claim that was based on an alleged breach of a disciplinary rule.
In Pope Investments, two groups of plaintiffs sued a handful of defendants, including a law firm and one of its partners, in connection with a failed investment. The court addressed many issues in deciding the motions to dismiss. Here we focus on its dismissal of a malpractice claim based on an alleged breach of a disciplinary rule. The court explained that simply alleging a violation of a disciplinary rule was insufficient to state a claim for legal malpractice: