Blogs

Commercial Division Blog

Current Developments in the Commercial Divisions of the
New York State Courts by Schlam Stone & Dolan LLP
Posted: January 16, 2018

Court of Appeals Grants Leave to Appeal in Case Involving Dismissal of Action Filed By Counsel That Does Not Maintain An Office in New York

On January 11, 2017, the Court of Appeals granted leave to appeal in Arrowhead Capital Fin., Ltd. v. Cheyne Specialty Fin. Fund L.P. In Arrowhead Capital, Justice Kornreich of the New York County Commercial Division granted a motion to dismiss because the plaintiff’s counsel did not maintain an office in New York in violation of Section 470 of the Judiciary Law.  See our previous post about the First Department’s decision here.

This was a harsh result for the plaintiff to be sure, especially in an era when telecommuting and “virtual” offices are increasingly common.  However, the Court of Appeals has ruled that the Judiciary Law requires a lawyer to maintain a physical office in the state.  See Schoenefeld v. New York, 25 N.Y.3d 22 (2015).  And the Second Circuit has rejected a challenge to the constitutionality of the requirement.  See Schoenefeld v. Schneiderman, 821 F.3d 273 (2016).

Our practice includes not just litigating in the trial courts, but also bringing appeals in state and federal appellate courts, like the Court of Appeals. Contact Schlam Stone & Dolan partner Bradley Nash at bnash@schlamstone.com if you or a client have questions regarding bringing–or opposing–an appeal in New York state or federal court.

Click here to subscribe to this or another of Schlam Stone & Dolan’s blogs.

View posts