Even if a Party’s Counsel in Another Action Agrees to Accept Service, Service is not Effective Without Evidence that the Defendant Gave His Counsel Permission to Accept Service
Commercial Case Notes / Service of Process

Even if a Party’s Counsel in Another Action Agrees to Accept Service, Service is not Effective Without Evidence that the Defendant Gave His Counsel Permission to Accept Service

On September 15, 2023, Justice Cohen of the New York County Commercial Division issued a decision in Credit Europe Bank (Dubai) Ltd. v. Shetty, 2023 NY Slip Op. 33204(U), holding that even if a party’s counsel in another action agrees to accept service, service is not effective without evidence that the defendant gave his counsel permission to accept service . . . Continue reading Even if a Party’s Counsel in Another Action Agrees to Accept Service, Service is not Effective Without Evidence that the Defendant Gave His Counsel Permission to Accept Service

Rescission and Rescissory Damages Unavailable When Defendant is Not Contractual Counterparty
Commercial Case Notes / Contracts / Damages

Rescission and Rescissory Damages Unavailable When Defendant is Not Contractual Counterparty

On September 14, 2023, Justice Schecter of the New York County Commercial Division issued a decision in Han v. Kwak, 2023 NY Slip Op. 33207(U), holding that rescission and rescissory damages are unavailable against a defendant who is not a party to the transaction that he fraudulently induced.” Continue reading Rescission and Rescissory Damages Unavailable When Defendant is Not Contractual Counterparty

Where Servicer and Originator Were the Same, Originator’s Failure to Cure Defective Loans Constituted Servicer Failure to Perform Event of Default
ABS Update / Claims Against Trustees

Where Servicer and Originator Were the Same, Originator’s Failure to Cure Defective Loans Constituted Servicer Failure to Perform Event of Default

On September 21, 2023, Judge Engelmayer of the S.D.N.Y, issued a decision in Ambac Assurance Corporation v. U.S. Bank, 17 Civ. 2614 (PAE) (KHP), holding that where the servicer and originator were the same, the originator’s failure to cure defective loans was a servicer failure to perform event of default. Continue reading Where Servicer and Originator Were the Same, Originator’s Failure to Cure Defective Loans Constituted Servicer Failure to Perform Event of Default

Court Dismisses Claim Against Servicer for Failing to Give Notice of Representation and Warranty Breaches Because Originator Would Have Ignored Any Demand Made on It
ABS Update / Put-Back Actions

Court Dismisses Claim Against Servicer for Failing to Give Notice of Representation and Warranty Breaches Because Originator Would Have Ignored Any Demand Made on It

On September 19, 2023, Justice Crane of the New York County Commercial Division issued a decision in HSBC Bank USA, N.A. v. Nomura Credit & Capital, Inc., 2023 NY Slip Op. 33252(U), dismissing a claim against Ocwen for failing to give Nomura notice of representation and warranty breaches because Normura would have refused to cure any breaches of which it was given notice . . . Continue reading Court Dismisses Claim Against Servicer for Failing to Give Notice of Representation and Warranty Breaches Because Originator Would Have Ignored Any Demand Made on It

Non-Mutual Forum Selection Clause Did Not Create Jurisdiction over Defendant in New York
Choice of Forum/Forum Non Conveniens / Commercial Case Notes

Non-Mutual Forum Selection Clause Did Not Create Jurisdiction over Defendant in New York

On September 12, 2023, Justice Ruchelsman of the Kings County Commercial Division issued a decision in Mancini Earth & Pipe LLC v. Seamless Capital Group, LLC, 2023 NY Slip Op. 33250(U), holding that a non-mutual forum selection clause did not create jurisdiction over a defendant in New York . . . Continue reading Non-Mutual Forum Selection Clause Did Not Create Jurisdiction over Defendant in New York

Claim Based on Successor Liability Fails Without Evidence That Defendant Purchased Assets
Commercial Case Notes / Veil Piercing/Alter Ego

Claim Based on Successor Liability Fails Without Evidence That Defendant Purchased Assets

On September 21, 2023, the First Department issued a decision in 47 E. 34th St. (NY) L.P. v. BridgeStreet Worldwide, Inc., 2023 NY Slip Op. 04702, holding that a claim based on successor liability failed for lack of evidence that the defendant purchased the assets of the predecessor company . . . Continue reading Claim Based on Successor Liability Fails Without Evidence That Defendant Purchased Assets