LLC Members Could Not Prevail on Direct Claims Because the Damages the Defendant Allegedly Caused Were to the LLC

LLC Members Could Not Prevail on Direct Claims Because the Damages the Defendant Allegedly Caused Were to the LLC

On August 2, 2022, the First Department issued a decision in Mohinani v. Charney, 2022 NY Slip Op. 04782, holding that LLC members could not prevail on direct claims for breach of fiduciary duty against the LLC’s manager because the injury they alleged was to the LLC, and thus their claims were derivative . . . Continue reading LLC Members Could Not Prevail on Direct Claims Because the Damages the Defendant Allegedly Caused Were to the LLC

Legal Malpractice Claim Fails for Failure to Show How the Alleged Malpractice Injured Plaintiff

Legal Malpractice Claim Fails for Failure to Show How the Alleged Malpractice Injured Plaintiff

On August 2, 2022, the First Department issued a decision in Markov v. Barrows, 2022 NY Slip Op. 04780, holding that a legal malpractice claim failed because the plaintiff did not show how the defendants’ malpractice damaged the plaintiff . . . Continue reading Legal Malpractice Claim Fails for Failure to Show How the Alleged Malpractice Injured Plaintiff

Property Owner is Not a Necessary Party to a Lien Law Foreclosure Action if the Lien has Been Bonded or Discharged

Property Owner is Not a Necessary Party to a Lien Law Foreclosure Action if the Lien has Been Bonded or Discharged

On July 26, 2022, Justice Crane of the New York County Commercial Division issued a decision in High Valley Designs Ltd. v. Bruno Frustaci Contr. Inc., 2022 NY Slip Op. 32479(U), holding that a property owner was not a necessary party to an action to foreclose on a Lien Law claim when the lien has been bonded or discharged . . . Continue reading Property Owner is Not a Necessary Party to a Lien Law Foreclosure Action if the Lien has Been Bonded or Discharged

Court Awards Attorneys’ Fees for One Claim Based on a Percentage of Time Spent on all Claims

Court Awards Attorneys’ Fees for One Claim Based on a Percentage of Time Spent on all Claims

On July 18, 2022, Justice Cohen of the New York County Commercial Division issued a decision in Kolchins v Evolution Mkts. Inc., 2022 NY Slip Op. 32379(U), awarding attorneys’ fees for one claim based on a percentage of the time spent on all claims despite the absence of a lodestar calculation based on the actual number of hours worked on that one claim . . . Continue reading Court Awards Attorneys’ Fees for One Claim Based on a Percentage of Time Spent on all Claims

Derivative Plaintiff’s Motives are Irrelevant to its Standing to Bring a Derivative Claim

Derivative Plaintiff’s Motives are Irrelevant to its Standing to Bring a Derivative Claim

On July 18, 2022, Justice Ruchelsman of the Kings County Commercial Division issued a decision in Larsen v. Larsen, 2022 NY Slip Op. 32415(U), holding that a derivative plaintiff’s motives are irrelevant to its standing to bring a derivative claim . . . Continue reading Derivative Plaintiff’s Motives are Irrelevant to its Standing to Bring a Derivative Claim

Property Owner Lacks Standing to Assert Claim for Diversion of Lein Law Trust Funds

Property Owner Lacks Standing to Assert Claim for Diversion of Lein Law Trust Funds

On July 19, 2022, Justice Ruchelsman of the Kings County Commercial Division issued a decision in Aki Renovations Group, Inc. v. 38 PPSW, LLC, 2022 NY Slip Op. 32412(U), holding that a property owner lacked standing to assert a claim for diversion of Lein Law trust funds . . . Continue reading Property Owner Lacks Standing to Assert Claim for Diversion of Lein Law Trust Funds