Declaratory Judgment Claim Viable Even Though it Contemplated Future Events Beyond the Parties’ Control

On October 27, 2022, the First Department issued a decision in GLCA Sec., LLC v. Gardes Holdings, Inc., 2022 NY Slip Op. 06064, holding that a declaratory judgment claim was viable even though it contemplated future events beyond the parties’ control, explaining:

The court correctly denied plaintiff’s cross motion to dismiss defendant’s counterclaim seeking a declaratory judgment. The counterclaim alleges that defendant’s business is being impacted by plaintiff’s continuing assertion to a right to a transaction fee in connection with future transactions, and seeks a declaration as to the types of transactions that would entitle plaintiff to a fee. Although such declaratory relief contemplates future events beyond the control of the parties, it will have the immediate and practical effect of influencing the parties’ current conduct.

(Internal quotations and citations omitted).

Stay informed!
Sign up for email alerts and notifications here.
Read more about our Complex Commercial Litigation practice.