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NY Commercial Case Compendium

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

Threat of Excommunication (Siruv) by Rabbinical Court Not Duress: Court Finds Arbitration Agreement Valid, But Tosses Award of 160x Actual Damages

Posted in Arbitration, Industry: wholesale, Justice Demarest, Carolyn E., Kings, Motion to Dismiss

In a November 7, 2014 Commercial Division decision by Justice Demarest, the court vacated an arbitration award issued by the Rabbinical Court of Givas Hamorah (“Givas Hamorah”) and remitted the matter for rehearing. Continue Reading

Court Holds Yellowstone Injunction Appropriate Pending Trial Where there is an Insufficient Basis to Evaluate Whether Tenant Actually Violated Lease

Posted in Industry: real estate, Justice Demarest, Carolyn E., Kings, Order to Show Cause, Preliminary Injunction

In a December 19, 2014, Commercial Division decision by Justice Demarest, the court granted the plaintiff’s motion, brought by order to show cause, for a Yellowstone injunction. Continue Reading

Mortgagee Waives Standing Defense by Raising it For the First Time in Opposition to Summary Judgment

Posted in Industry: banking, Justice Whelan, Thomas, Suffolk, Summary Judgment

In an August 15, 2014 Commercial Division decision by Justice Whelan, the court granted Plaintiff’s motion for summary judgment.  Plaintiff commenced an action to foreclose a restated mortgage given by Defendant on a property in Bohemia, New York. Continue Reading

Champerty Defense in Action Against Morgan Stanley Arising Out of Purchase of Mortgage Backed Securities Rejected

Posted in Fraud, Industry: banking, Justice Friedman, New York, Statute of Limitations

In an October 28, 2014 Commercial Division decision by Justice Friedman, the court granted in part, and denied in part, Morgan Stanley’s motion to dismiss a fraud action.  The action was brought by plaintiff IKB International S.A. in Liquidation, alleging fraud on the part of Morgan Stanley in connection with the purchase of residential mortgage backed securities that were securitized and sold by the Morgan Stanley defendants. Continue Reading

Plaintiff Fails to Escape Arbitrability Dilemma in Opposing Motion to Compel Arbitration

Posted in Arbitration, Breach of Fiduciary Duty, Justice Ritholtz, Martin E., Queens

In a November 25, 2014, Commercial Division decision by Justice Ritholtz, the court granted defendant-developer’s motion to compel arbitration of a dispute over a parcel of property owned by plaintiff in connection with a community development project in Astoria, Queens.  Continue Reading

Court Confers Judgment-Creditor Status Based on Creditor’s Diligence and Expenditure of “Tremendous Resources” in its Unsuccessful Attempts to Enforce its Judgment

Posted in Industry: banking, Justice Ramos, Charles E., New York

In a November 14, 2014, Commercial Division decision by Justice Ramos, deciding a motion brought by the Superintendent of Financial Services of the State of New York (“Superintendent”) seeking an order determining Sage Realty Corporation’s (“Sage”) priority of payment for its claim against Jugobanka A.D., Beograd (“Jugobanka”), the court held that Sage had the status of a judgment creditor of Jugobanka. Continue Reading

Summary Judgment Granted Where Third-Party Plaintiff Failed to Properly Exercise Option Upon Which Breach of Contract Based

Posted in Breach of Contract, Industry: banking, Justice Whelan, Thomas, Suffolk, Summary Judgment

In a December 4, 2014, Commercial Division decision by Justice Whelan, the court granted the third-party defendant’s motion for summary judgment dismissing the third-party complaint. The main action was commenced against the multiple defendants to foreclose the lien of a consolidated mortgage, which had been assigned to the plaintiff VFC Partners 19, LLC by third-party defendant, Hudson Valley Bank, NA (“Hudson Valley”). In the third-party action, the third-party plaintiffs asserted three causes of action against Hudson Valley for allegedly breaching obligations purportedly arising under the terms of the consolidated note indenture, which afforded the third-party plaintiff Romaz Properties Ltd. (“Romaz”) an option to renew the note for an additional five year term, which would extend the note’s maturity beyond the original maturity date. The third-party plaintiffs alleged that as a result of Hudson Valley’s purported breaches, it was responsible for Romaz’s default under the terms of the consolidated mortgage, which breach led to the main action. The court granted Hudson Valley’s motion, finding that the third-party plaintiffs failed “to allege, let alone establish, any of the elements necessary for the successful prosecution of a breach of contract claim.” The court further explained that the option provision of the note, upon which the third party complaint was based, imposed upon Romaz certain obligations for the successful exercise of the option, and that Romaz admitted to its failure to satisfy those obligations and, more fundamentally, to properly exercise the option.

Public Confusion Arising from Cold Spring Harbor Construction Company’s Use of Trade Name Similar to Competitor’s Warrants Preliminary Injunction

Posted in Industry: construction, Justice Whelan, Thomas, Preliminary Injunction, Suffolk

In a November 20, 2014, Commercial Division decision by Justice Whelan, the court granted the plaintiff’s motion for preliminary injunctive relief. The plaintiff, Cold Spring Harbor Construction, Inc. (“CSHC, Inc.”) commenced the action seek to restrain and enjoin the defendant, Cold Spring Builders, Inc. (“CSB, Inc.”), a newly formed from using and employing the trade name “Cold Spring Builders” on the basis that its use of that name constituted trade name dilution and unfair a competition pursuant to, inter alia, GBL § 360-l, the “anti-dilution statute.” Continue Reading

Note to Plaintiff: Attacking Defendants’ Faith and Threatening Their Wives through Direct Contact Will Get You Sanctioned

Posted in Attorneys' Fees, Breach of Contract, Breach of Fiduciary Duty, Justice Ramos, Charles E., New York

In a December 8, 2014, Commercial Division decision by Justice Ramos, the court granted defendants’ motion for injunctive relief and sanctions against plaintiff corporation and its majority shareholder in an action alleging that defendants exploited plaintiff’s confidential and proprietary information in breach of their fiduciary duties and employment agreements.  Continue Reading

Workers’ Compensation Self-Insurance Trust States Claim Against Former Members for Unpaid Loss Adjustments

Posted in Albany, Breach of Contract, Fiduciary Duty, Industry: healthcare, Justice Platkin, Richard, Uncategorized

In a December 5, 2014 Commercial Division decision by Justice Platkin, the court resolved the parties cross-motions to dismiss counterclaims and third-party complaints.

The parties.

Plaintiff NYASHA Services, Inc Self-Insurance Trust (“Trust”) was a trust formed pursuant to the Workers’ Compensation Law.  Its members were employers in the home healthcare industry.  In 1999, the Trust entered two agreements with Third-Party Defendants (“Cool”), who agreed to administer the self-insurance program in exchange for a percentage of annual premiums.  Defendant/Third-Party Plaintiff PeopleCare was a member of the trust. Continue Reading