On May 4, 2023, the First Department issued a decision in MRE Tech. Solutions LLC v. Smiths Detection, Inc., 2023 NY Slip Op. 02387, holding that refusing to negotiate was an insufficient basis for equitable estoppel, explaining:
Furthermore, plaintiff’s allegations do not support estoppel. Equitable estoppel is an extraordinary remedy, which applies where a party is prevented from filing an action within the applicable statute of limitation due to his or her reasonable reliance on deception, fraud or misrepresentations by the other. Plaintiff has the burden of establishing that defendant engaged in affirmative misconduct that prevented it from timely asserting its claims. Here, the amended complaint alleges that defendant refused to negotiate towards resolution of the parties’ dispute. However, there is no evidence or even an allegation that defendant lulled plaintiff into inaction in order to allow the limitations period to lapse.
(Internal citations omitted).