LLC’s Prior Counsel Disqualified From Representing One Member in a Suit Against Another Member Regarding the LLC’s Management
Commercial Case Notes / Law Firms and Professional Ethics

LLC’s Prior Counsel Disqualified From Representing One Member in a Suit Against Another Member Regarding the LLC’s Management

On April 17, 2026, Justice Boddie of the Kings County Commercial Division issued a decision in Reich v. Purslane, LLC, 2026 NY Slip Op. 31768(U), disqualifying a limited liability company’s Continue reading LLC’s Prior Counsel Disqualified From Representing One Member in a Suit Against Another Member Regarding the LLC’s Management

Mixing Direct and Derivative Claims in a Complaint is no Basis for Dismissal so Long as Individual Claims are not Mixed
Commercial Case Notes / Derivative Actions

Mixing Direct and Derivative Claims in a Complaint is no Basis for Dismissal so Long as Individual Claims are not Mixed

On April 16, 2026, Justice Boddie of the Kings County Commercial Division issued a decision in Hangquin Huang v. 40-70 Realty LLC, 2026 NY Slip Op. 31773(U), holding that mixing direct and derivative claims in a complaint is no basis for dismissal so long as the individual claims are not mixed . . . Continue reading Mixing Direct and Derivative Claims in a Complaint is no Basis for Dismissal so Long as Individual Claims are not Mixed

Even Where Contract Gives Party Right to Act in its Sole Discretion, it Still Must Exercise That Discretion in Good Faith
Commercial Case Notes / Contracts

Even Where Contract Gives Party Right to Act in its Sole Discretion, it Still Must Exercise That Discretion in Good Faith

On May 28, 2026, the Court of Appeals issued a decision in 111 W. 57th Inv. LLC v. 111 W57 Mezz Inv. LLC, 2026 NY Slip Op. 03376, holding that even where a contract gives a party the right to act in its sole discretion, it still must exercise that discretion in good faith . . . Continue reading Even Where Contract Gives Party Right to Act in its Sole Discretion, it Still Must Exercise That Discretion in Good Faith

Derivative Action Demand Futility Must be Alleged in Complaint, Not Just in Opposition to Motion to Dismiss
Commercial Case Notes / Derivative Actions

Derivative Action Demand Futility Must be Alleged in Complaint, Not Just in Opposition to Motion to Dismiss

On April 22, 2026, Justice Masley of the New York County Commercial Division issued a decision in Mayer v. Goldner, 2026 NY Slip Op. 31753(U), holding that demand futility in a derivative action must be alleged in the complaint and not just in the opposition to the motion to dismiss . . . Continue reading Derivative Action Demand Futility Must be Alleged in Complaint, Not Just in Opposition to Motion to Dismiss

Conversion Claim Can be Based on Broker’s Unreasonable Actions in Transferring Plaintiff’s Property Without Her Consent
Commercial Case Notes / Conversion/Trespass to Chattel

Conversion Claim Can be Based on Broker’s Unreasonable Actions in Transferring Plaintiff’s Property Without Her Consent

On April 20, 2026, Justice Bannon of the New York County Commercial Division issued a decision in Mojela v. Interactive Brokers LLC, 2026 NY Slip Op. 31754(U), upholding a conversion claim based on a broker’s unreasonable actions in transferring the plaintiff’s property without her consent . . . Continue reading Conversion Claim Can be Based on Broker’s Unreasonable Actions in Transferring Plaintiff’s Property Without Her Consent

Questions of Fact Precluded Dismissal Based on a Release Where the Release Allegedly Was Procured Through Economic Duress
Commercial Case Notes / Motion to Dismiss

Questions of Fact Precluded Dismissal Based on a Release Where the Release Allegedly Was Procured Through Economic Duress

On April 29, 2026, the Second Department issued a decision in Karp v. Madison Realty Capital, L.P., 2026 NY Slip Op. 02637, holding that questions of fact precluded dismissal based on a release where the release allegedly was procured through economic duress . . . Continue reading Questions of Fact Precluded Dismissal Based on a Release Where the Release Allegedly Was Procured Through Economic Duress

Court Awards Limited Spoliation Sanctions For Negligent Destruction of Evidence Because of Limited Evidence of Prejudice
Commercial Case Notes / Discovery/Disclosure / Sanctions

Court Awards Limited Spoliation Sanctions For Negligent Destruction of Evidence Because of Limited Evidence of Prejudice

On April 17, 2026, Justice Boddie of the Kings County Commercial issued a decision in WHOP, Inc. v. Salisbury, 2026 NY Slip Op. 31693(U), awarding limited spoliation sanctions for negligent destruction of evidence because of limited evidence of prejudice . . . Continue reading Court Awards Limited Spoliation Sanctions For Negligent Destruction of Evidence Because of Limited Evidence of Prejudice