On October 6, 2023, the Fourth Department issued a decision in L&W Supply Corp. v. Built-Rite Drywall Corp., 2023 NY Slip Op. 05079, holding that a motion to vacate a default judgment does not require a showing of a reasonable excuse or a meritorious defense . . . Continue reading A Challenge to Default Based on Lack of Personal Jurisdiction Does Not Require Excuse or Showing of Merit
On September 29, 2023, Justice Masley of the New York County Commercial Division issued a decision in Beach v. Touradji Capital Mgt., LP, 2023 NY Slip Op. 33360(U), denying a motion to redact documents showing a party’s business dealings with the Trump family . . . Continue reading Court Refuses Request to Redact Documents Showing a Party’s Business Dealings With the Trump Family
On September 27, 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. 33361(U), dismissing an RMBS loan servicer’s claim for lost profits damages arising from the seller’s failure to give notice of document defects . . . Continue reading Court RMBS Loan Servicer’s Claim for Lost Profit Damages Arising from Seller’s Failure to Give Notice of Document Defects
On September 29, 2023, Justice Crane of the New York County Commercial Division issued a decision in NW Media Holdings Corp. v. IBT Media Inc., 2023 NY Slip Op. 33366(U), holding that an aiding and abetting claim does not lie against a defendant who urged others to aid misconduct but who did not himself provide any aid . . . Continue reading Aiding and Abetting Claim Does Not Lie Against Defendant That Urged Others to Aid But Who Did Not Himself Aid
On September 28, 2023, Justice Boddie of the Kings County Commercial Division issued a decision in Farro v. Schochet, 2023 NY Slip Op. 33394(U), holding that the faithless servant doctrine does not permit recoupment of income related to work untainted by the unfaithful misconduct . . . Continue reading Faithless Servant Doctrine Does Not Permit Recoupment of Income Related to Work Untainted by Misconduct
On September 28, 2023, Justice Boddie of the Kings County Commercial Division issued a decision in Hager v Inner Circle Logistics, Inc., 2023 NY Slip Op. 33395(U), upholding a legal malpractice claim at the pleading stage based on attorneys’ misconduct that injured plaintiff . . . Continue reading Malpractice Claim Based on Attorneys’ Misconduct that Injured Plaintiff Upheld at Pleading Stage
On October 5, 2023, the First Department issued a decision in 111 W. 57th Inv. LLC v/ 111 W57 Mezz Inv. LLC, 2023 NY Slip Op. 05029, holding that a defendant that had the sole discretion to take an action could not be held liable for breaching the covenant of good faith and fair dealing for doing so . . . Continue reading No Claim for Breach of Covenant of Good Faith Lies Where Defendant Had Full Discretion to Act
On September 28, 2023, Justice Chan of the New York County Commercial Division issued a decision in White Oak Commercial Fin., LLC v. EIA Inc., 2023 NY Slip Op. 33362(U), holding that a secured creditor may enjoin a guarantor’s assets . . . Continue reading Secured Creditor May Enjoin Guarantor’s Assets
Last Friday, the SEC announced that the agency had settled charges against D.E. Shaw & Co. LP, a New-York based investment advisor. Since 2011, and through at least 2019, D.E. Shaw had been in habit of requiring employees to sign agreements prohibiting the disclosure of confidential corporate information to third parties. These agreements did not have an exception for potential whistleblowers. The company also required departing employees to sign releases before receiving post-termination payments; those releases required the employees to affirm that they have not filed any complaints with any government agency. The settlement included a $10 million dollar civil money penalty. Continue reading SEC Frowns on Impeding Potential Whistleblowers: $10 Million Fine
On September 22, 2023, Just5ice Crane of the New York County Commercial Division issued a decision in Penn Hotel Jr. LLC v. JCMC W. 34 Mezz II LLC, 2023 NY Slip Op. 33315(U), holding that questions of fact precluded dismissal of a claim that a liquidated damages provision was an unenforceable penalty . . . Continue reading Questions of Fact Preclude Dismissal of Claim That Liquidated Damages Clause Was an Unenforceable Penalty
