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
On September 28, 2023, the First Department issued a decision in Ringel v. Ringel, 2023 NY Slip Op. 04831, holding that a trial court erred in dismissing a claim sua sponte, without giving the plaintiff an opportunity to respond . . . Continue reading Court Erred in Dismissing Claim Sua Sponte Without Giving Party a Chance to Respond
On September 26, 2023, the First Department issued a decision in AOG, LLC v. Kind Operations Inc., 2023 NY Slip Op. 04710, holding that a recoupment defense should have been dismissed for lack of a contractual duty to make the payments to be recouped . . . Continue reading Recoupment Defense Fails for Lack of Contractual Duty to Make Payments to be Recouped
On September 14, 2023, Justice Schecter of the New York County Commercial Division issued a decision in Marconi v. Gates Capital Corp., 2023 NY Slip Op. 33197(U), dismissing a legal malpractice claim on summary judgment for lack of facts showing that the defendants’ alleged malpractice damaged the plaintiff . . . Continue reading Legal Malpractice Claim Fails for Lack of Evidence of Causation
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
On September 14, 2023, Justice Crane of the New York County Commercial Division issued a decision in Columbia Tech. Corp. v. Yoo, 2023 NY Slip Op. 33205(U), holding that under the faithless servant doctrine, the defendant had to repay the salary he had been paid, explaining: Continue reading Defendant Must Repay Salary under Faithless Servant Doctrine
