New York Business Divorce revisits the case of Chiu v. Chiu in a two-part analysis on the occasion of a post-trial decision by Justice Allan Weiss in this long-running battle between two brothers over the ownership and valuation of a real estate holding company. The prevailing Chiu brother, Winston, is represented by Schlam Stone & Dolan partners Jeffrey M. Eilender, David Katz and Jonathan Mazer and associate Samuel L. Butt.
On August 9, the New York Law Journal featured a report on the decision by the Appellate Division First Department modifying a lower court's decision by requiring four New York limited liability companies to indemnify their former Managers for the full amount of attorneys' fees awarded by a Special Referee. The appeals court was divided on the novel issue of whether the LLCs should also have been required to pay the fees incurred by the former Managers in successfully vindicating their indemnification rights. The case was ultimately settled on terms favorable to Schlam Stone & Dolan's clients.
In a case of first impression in New York, Schlam Stone & Dolan partner David Katz obtained a preliminary injunction in favor of a former employee of Checker's Drive-In Restaurants whose stock options were about to expire, tolling the exercise deadline of his options. The injunction was granted pending the adjudication of the claimant's breach of contract claim alleging that his employer had breached a shareholder agreement provision requiring the employer to provide him with certain financial information so he could make an informed decision about whether to exercise his options. New York County Commercial Division Supreme Court Justice Melvin Schweitzer ruled that the Schlam Stone & Dolan client had demonstrated that he was likely to succeed on the merits of his breach of contract claim and that he would suffer irreparable harm if the exercise deadline was not tolled. The case settled shortly after the preliminary injunction was granted.
Schlam Stone & Dolan lawyers Michael Battle, Bradley Nash and Raffi Melkonian have secured a preliminary injunction directing a D & O insurance carrier to advance legal defense fees to a corporate officer, despite a guilty verdict against him in a criminal trial. New York County Commercial Division Justice Shirley Kornreich ordered Scottsdale Insurance Company to advance the attorneys' fees, holding that the fact of conviction was insufficient to trigger the policy's exclusions.
Martindale-Hubbell has named Schlam Stone & Dolan as one of the New York area's top law firms. This elite rating is based upon the number of the Firm's lawyers who were rated "preeminent" by their peers in surveys of professional merit and integrity.
Schlam Stone & Dolan partners Richard Dolan, Harvey Stone and Elizabeth Wolstein, together with counsel Ronald Russo, are representing controversial radio host and blogger Harold "Hal" Turner as he appeals his 2010 conviction for threatening three Chicago-area federal judges when he criticized, in a commentary on his website, the Court's decision upholding two local gun ordinances. At oral argument on May 15, 2012, Mr. Dolan urged the Second Circuit to overturn Mr. Turner's conviction, arguing that his comments communicated no threat of imminent harm and were therefore protected by the First Amendment.
A lawsuit brought in New York State Court by Schlam Stone & Dolan lawyers John M. Lundin and Samuel L. Butt on behalf of victims of a Ponzi scheme is gaining international press coverage. The Complaint in the lawsuit accuses almost 40 defendants located in Europe, the Far East, the Middle East and the United States of a variety of wrongs, including racketeering, fraud, unjust enrichment, fraudulent transfers and conveyances, breach of fiduciary duty and breach of contract. The focus of the lawsuit is a family of entities named Montague Morgan Slade, MMS and Mo-Mo Mama operated by Britons Anthony Heald and Gordon Spedding and American Michael L. Brown.
A motion to dismiss Schlam Stone & Dolan client AXA's lawsuit against ING Insurance International was denied by New York County Commercial Division judge Eileen Bransten. AXA alleges that ING misled it about the financial condition of a Mexican insurance company AXA bought from ING for $1.5 billion in 2008. Although AXA’s claim for punitive damages as well as another minor claim were dismissed, the lawsuit's core allegations of misrepresentation and breach of contract survive, as does AXA's request for a declaratory judgment concerning potential future losses. Schlam Stone & Dolan's AXA team is lead by partners Jeffrey Eilender, who argued the motion, John Lundin, and Erik Groothuis. AXA is also represented by attorneys from Mayer Brown, LLP.
Middleweight Marco Antonio Rubio filed an official protest against the result of his February 4, 2012, WBC championship bout. Rubio requests that the bout's result be set aside based upon the WBC's failure to drug test either boxer despite suspicious circumstances, specifically Julio Cesar Chavez, Jr.'s 22 lb weight gain in the 24 hours between the weigh-in and the fight. Rubio argues that such a large weight gain is evidence of use of prohibited diuretics. The protest has attracted media coverage in both the U.S. and Mexico.
Schlam Stone & Dolan partner David Katz was cited in a December 20, 2011 blog post in Truth On The Market written by Professor Larry Ribstein, the nation's foremost academic expert on the law of LLCs and other closely held entities. The article reports on the New York Court of Appeals' decision involving the fiduciary duties owed by organizers of New York LLCs to those they solicit to invest in the LLCs. Mr. Katz successfully convinced the Court of Appeals not to adopt a sweeping ruling reached by the lower appeals court holding that organizers of New York LLCs always owe fiduciary duties to those they solicit to invest in the LLCs based solely on their status as "promoters" of the LLCs.