Recoupment Defense Fails for Lack of Contractual Duty to Make Payments to be Recouped

Recoupment Defense Fails for Lack of Contractual Duty to Make Payments to be Recouped

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

Legal Malpractice Claim Fails for Lack of Evidence of Causation

Legal Malpractice Claim Fails for Lack of Evidence of Causation

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

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

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

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

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

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