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New York Commercial Division Case Compendium

A Searchable Database of Court Decisions Issued by New York’s Commercial Division

A Fair Exchange: Court Compelled Arbitration Where Option of Arbitration Was Exchanged for Employment

Posted in Arbitration, Class Action, Scheinkman, Alan D., Westchester

In a September 29, 2014, Commercial Division decision by Justice Scheinkman, the court granted defendant Command Security Corporation’s (“Defendant”) motion to stay the proceeding and compel arbitration.

This putative class action was initiated by plaintiff Richard Graham on behalf of himself and all other security guards similarly situated (“Plaintiff”) based on claims that Defendant violated various wage and hour laws. Defendant answered the complaint, and filed a motion to stay the proceeding and compel arbitration. The main issue addressed by the court was whether the parties made a valid agreement to arbitrate.  Continue Reading

Other Decisions of Interest

City Barred from Seeking Medicaid Reimbursement from Trustee Where Claims Should Have Been Raised in Prior Accounting Proceeding

Posted in Breach of Contract, Breach of Fiduciary Duty, CPLR 2221, Fraud, Healthcare, Motion to Dismiss, New York, Ramos, Charles E.

In a March 27, 2015, Commercial Division decision by Justice Ramos, the court denied a motion by plaintiff NYC Dept. of Social Services to reargue defendant-trustee’s motion to dismiss for res judicata purposes.

The case arose out of an underlying medical malpractice action involving the treatment of defendant’s son at New York Presbyterian Hospital. The parties settled the malpractice action, under which NYPH agreed to indemnify defendant for any Medicaid payments sought by plaintiff in connection with his son’s treatment. Continue Reading

CISG Preemption of State Law Contract Claim Does Not Compel Dismissal of that Cause of Action

Posted in Breach of Contract, Manufacturing, Motion to Dismiss, Pines, Emily, Statute of Limitations, Suffolk

In a March 12, 2015, Commercial Division decision by Justice Pines, the court denied dismissal of a breach of contract cause of action.

In this case, plaintiff U.S. Nonwovens Corp. (“Plaintiff”) entered into an agreement with defendant Nuspark Engineering Corp. (“Nuspark”) for the purchase of a custom automatic filling and sealing machine (“Auto Tubber”) for use in its business of producing non-woven products. Plaintiff agreed to pay Nuspark $150,000 for the Auto Tubber, as well as installation and commissioning. Continue Reading

Class Certification Granted on Lien Law Article 3-A Trust Fund Diversion Claims

Posted in Class Action, Construction, Demarest, Carolyn E., Kings

In a February 24, 2015, Commercial Division decision by Justice Demarest, the court granted the plaintiff’s motion for class certification of two of its claims. This case arose out of a development project for which the defendant North 7-8 Investors, LLC (“North 7-8) was the owner and developer of the project and the defendant Britt Realty, LLC (“Britt”) was the general contractor and/or construction manager.  Continue Reading

Court Dismissed Mortgage Foreclosure Action Where Tenants of Residential Real Property Were Not Provided Notice

Posted in Demarest, Carolyn E., Kings, Motion to Dismiss, Real estate

In a February 5, 2015, Commercial Division decision by Justice Demarest, the court dismissed an action to foreclose a mortgage on real property because plaintiff failed to provide the notice pursuant to Real Property Actions and Proceedings Law (“RPAPL”) § 1303(1)(b).

RPAPL § 1303 provides that “the foreclosing party in a mortgage foreclosure action, involving residential real property shall provide notice to: (a) any mortgagor if the action relates to an owner-occupied one-to-four family dwelling; and (b) any tenant of a dwelling unit in accordance with the provisions of this section.”  Continue Reading

Sanctions Entered Against Landlord’s Counsel for Failure to Issue Document Hold and Insufficient Document Productions Prior to Depositions

Posted in Bransten, Eileen, Legal, New York, Summary Judgment

In a March 4, 2015 Commercial Division decision by Justice Bransten, the court entered sanctions against counsel for defendant landlord, awarding attorneys’ fees on the motion and for related depositions. The court also granted in part the landlord’s motion to dismiss the cause of action of plaintiff tenant-law firm for breach of implied covenant of good faith and fair dealing. Continue Reading

Purported Debt Acknowledgment Submitted at Oral Argument Insufficient to Restart Limitations Period in Opposition to Dismissal Motion

Posted in 2d Dept, Attorneys' Fees, Breach of Contract, Construction, Motion to Dismiss, Statute of Limitations, Unjust Enrichment

In a decision dated January 21, 2015, the Appellate Division, Second Department, affirmed an order from the Kings County Commercial Division granting defendant-developers’ motion to dismiss as time-barred plaintiff-contractor’s claims for breach of contract and unjust enrichment. Continue Reading

1st Department Reverses Commercial Division’s Granting of Motion to Dismiss Breach of Employment Contract as Premature

Posted in 1st Dept, Breach of Contract, Financial services, Motion to Dismiss

In an October 28, 2014 decision, the Appellate Division, First Department reversed the Commercial Division, New York County’s decision, which granted the defendants’ motion to dismiss. This action arose from the individual defendant’s (“Ephraim”) two-year employment contract (the “Contract”) with the plaintiff (“Greystone”), which included three restrictive covenants at issue: a noncompete clause; a nonsolicitation clause; and a confidentiality provision (the “Covenants”).  Continue Reading

Motion to Dismiss for Failure to Join Necessary Party Denied, Defendant Failed to Establish Non-Party Beyond the Court’s Jurisdiction

Posted in Arbitration, Insurance, Motion to Dismiss, Suffolk, Whelan, Thomas

In a December 4, 2014 Commercial Division decision by Justice Whelan, the court denied the defendant’s motion to dismiss for plaintiff’s alleged failure to join a necessary party, and to compel arbitration in the alternative. The plaintiff alleged the defendant was an alter ego of a non-party company for whom the plaintiff contractually agreed to perform software development. Continue Reading

Pop Comes Out On Top: Court Dismisses Case Against Coca-Cola Based on Enforcement of a Forum Selection Clause

Posted in Class Action, Motion to Dismiss, Scheinkman, Alan D., Westchester

In a January 30, 2015, Commercial Division decision by Justice Scheinkman, the court granted defendant’s motion dismissing plaintiffs’ class action complaint based on the enforcement of a forum selection clause.

Plaintiffs commenced this action on behalf of themselves and others similarly situated who have been charged a $1.20 deposit handling fee for every 24-bottle case of beverages purchased from defendant that was eligible for a five cents per bottle refund, alleging that defendant, Coca-Cola, violated the New York’s Returnable Container Act (the “Bottle Bill”). Continue Reading