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

Category Archives: Financial services

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A 21st Century Litigant’s Credo: I Shall Preserve ESI, or Sanctions Will Follow – Court Strikes Affirmative Defense and Awards Costs and Fees for Defendant’s Grossly Negligent Failure to Preserve ESI

Posted in Attorneys' Fees, Bransten, Eileen, Discovery, Financial services

In a December 7, 2015 Commercial Division decision by Justice Bransten, the court granted the plaintiff’s motion for spoliation sanctions due to the defendant’s failure to preserve electronically stored information (“ESI”).

All Causes of Action, Except for One, Survive Defendants’ Motion to Dismiss

Posted in 7th District, Breach of Contract, Financial services, Motion to Dismiss, Order to Show Cause, Preliminary Injunction, Rosenbaum, Matthew A., Tortious Interference with Business Relations, Unjust Enrichment

In a November 6, 2015 Steuben County Supreme Court decision by Justice Rosenbaum, the court denied defendants’ motion to dismiss plaintiff’s claims of tortious interference with contractual relations, tortious interference with business relations, and unfair competition, but granted defendants’ motion to dismiss with respect to plaintiff’s claim of unjust enrichment.

When Fiduciary Duties of Directors Are Split Between Two Companies, They Must Demonstrate ‘Entire Fairness’ of Decision

Posted in Banking, Breach of Fiduciary Duty, Financial services, New York, Ramos, Charles E., Shareholder Dispute, Summary Judgment

In an October 23, 2015, Commercial Division decision by Justice Ramos, the court denied the Defendants’ motion for summary judgment in its entirety, while granting the plaintiff’s motion for summary judgment in part, to the limited extent of determining that the “entire fairness standard” applies when a decision of the Board of Directors is challenged… Continue Reading

Statute of Limitations Begins Tolling at Closing of Pooling and Servicing Agreement in Residential Mortgage Backed Securities Put-Back Action, Despite Different Accrual Provision in Parties’ Private Contract

Posted in Banking, Breach of Contract, Financial services, Kornreich, Shirley Werner, Motion to Dismiss, New York, Statute of Limitations

In a September 18, 2015, Commercial Division decision by Justice Kornreich, the court granted the defendants’ consolidated motions to dismiss a Complaint pursuant to CPLR 3211, based on the defense that Plaintiff’s put-back claims were time barred. 

An Agent’s Authorized Sale of its Principal’s Property Passes Despite a Collateral Breach of the Agency Agreement

Posted in 4th Dept, Breach of Contract, Financial services, Summary Judgment

In a decision dated May 8, 2015, the Appellate Division, Fourth Department affirmed an order from the Erie County Commercial Division granting the defendant, RAB’s, cross-motion to dismiss the amended complaint and declaring that RAB was the rightful owner of certain consumer accounts receivable.

Developer’s $1 Billion Claim for Consequential Damages on a $200 Million Loan Obligation Offends “Commonsense” Rule of Construction under Kenford

Posted in Breach of Contract, Construction, Financial services, Friedman, JSC, Marcy S., Motion to Dismiss, New York

In a January 14, 2015, Commercial Division decision by Justice Friedman, the court granted defendant-lender’s motion to dismiss, at the pre-answer stage, plaintiff-borrower’s claim for consequential damages.

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… Continue Reading

Court Addresses Whether Assignment of Claims under Notes Was Void As Champertous

Posted in Estoppel, Financial services, New York, Ramos, Charles E., Summary Judgment

In a November 7, 2014, New York County Commercial Division decision by Justice Ramos, the court denied the parties’ cross-motions for summary judgment in a case involving the assignment to plaintiff of claims under notes worth approximately $38 million securing a loan made by defendant-lenders.

Plaintiff Shareholders Misconstrue Court’s Standard of Review of Determinations of Disinterested Boards Based on Disinterested Committee Reports

Posted in Derivative Actions, Estoppel, Financial services, Friedman, JSC, Marcy S., Motion to Dismiss, New York

In an October 22, 2014, New York County Commercial Division decision by Justice Friedman, the court granted defendant-trusts’ motion to dismiss plaintiffs’ consolidated shareholder derivative actions.  As shareholders in certain investment funds organized as business trusts under Massachusetts law, plaintiffs alleged that defendants and their investment advisors breached their fiduciary duties and wasted corporate assets… Continue Reading

Singapore Financial Company’s Suit Against Morgan Stanley Permitted to Proceed in New York Forum, Claims Over Failed Credit-Linked Notes Survive Dismissal

Posted in Bransten, Eileen, Breach of Contract, CPLR 3211, Documentary Evidence, Financial services, Fraud, Misrepresentation, Motion to Dismiss, New York

In a September 12, 2014 Commercial Division decision by Justice Bransten, the court granted in part the motion to dismiss of Morgan Stanley, pursuant to CPLR 327, CPLR 3211(a)(1), and CPLR 3016(b).  Plaintiff HLF, a Singapore financial company, asserted six causes of action based on allegations that Morgan Stanley fraudulently induced it to enter into… Continue Reading

Citigroup’s Motion to Dismiss RMBS-related Claims Held in Abeyance Pending Hearing on Foreign Statute of Limitations

Posted in CPLR 3211, Financial services, Fraud, Misrepresentation, Motion to Dismiss, Negligence, New York, Ramos, Charles E., Statute of Limitations

In a September 8, 2014 Commercial Division decision by Justice Ramos, the court held in abeyance the defendants’ motion to dismiss pending hearing. The case arose from yet another real estate mortgage backed securities (RMBS) transaction gone wrong, in this instance between the plaintiff Deutsche as the purchaser of $362 million of mortgage loan pass… Continue Reading

Partial Summary Judgment Granted, Dismissing 5 of 9 Investor Fraud Claims against MotherRock

Posted in Breach of Fiduciary Duty, Financial services, Fraud, Misrepresentation, Negligence, New York, Ramos, Charles E., Rescission, Summary Judgment

In a July 7, 2014 Commercial Division decision by Justice Ramos, the court granted in part and denied in part the defendants’ motion for summary judgment as to each of the plaintiffs’ causes of action. The plaintiffs sought to recover damages from losses allegedly suffered from their investments in the failed funds of the defendants,… Continue Reading

Plaintiff Lacks Standing to assert RMBS-related Fraud and Negligent Misrepresentation Claims

Posted in CPLR 3211, Financial services, Fraud, Misrepresentation, Motion to Dismiss, New York, Ramos, Charles E.

In a July 9, 2014 Commercial Division decision by Justice Ramos, the court granted the defendants’ motion to dismiss the complaint. The plaintiff asserted six cause of actions sounding in fraud and negligent misrepresentation, alleging  the defendants made certain misstatements and omissions in connection with approximately $158 million worth of certificates (“Certificates” ) purchased from… Continue Reading

Lien Holder Fails to Demonstrate Borrower Default Through Affidavit of Person With Personal Knowledge, Summary Judgment Denied

Posted in Banking, County/District/Appellate Division, Demarest, Carolyn E., Financial services, Industry, Judges, Keyword, Kings, Summary Judgment

In a July 23, 2014 Commercial Division decision by Justice Demarest, the court denied plaintiff’s motion for summary judgment and to appoint a referee to compute damages owed in a mortgage foreclosure action.  The affidavit provided by the plaintiff was from an “authorized representative” of the lien holder.  The court found that the affiant did… Continue Reading

Court Confirms Arbitration Award: No Basis to Vacate Award Demonstrated

Posted in Arbitration, Bransten, Eileen, Financial services, Fraud, New York

In a June 9, 2014 Commercial Division decision by Justice Bransten the court granted an application to confirm an arbitration award and denied a motion to vacate the award, providing over $100 million in damages to the Petitioners.  The dispute arose from a $75 million investment the Petitioners made in Respondents’ company.  Under the terms… Continue Reading

Petition to Permanently Stay FINRA Arbitration With Merrill Lynch Dismissed, Since Disputes Clearly Arose Out of Agreement With Mandatory Arbitration Clause

Posted in Arbitration, DeStefano, Vito M., Financial services, Nassau, Stay Arbitration

In a May 21, 2014 decision by Justice DeStefano, the Commercial Division dismissed a petition brought pursuant to CPLR 7503(b) which sought to permanently stay a third-party FINRA arbitration commenced by respondent Merrill Lynch.  The Court concluded that  petitioner failed to establish any right to relief under CPLR 7503(c), since there was no dispute that… Continue Reading

Forum Non Conveniens is Basis for Dismissal of Korean Company’s Suit against UBS Related to Lost Investment in Credit-Linked Notes

Posted in Breach of Contract, CPLR 3211, Failure to State a Claim, Financial services, Fraud, Misrepresentation, Motion to Dismiss, New York, Ramos, Charles E., Statute of Limitations, Unjust Enrichment

In a May 16, 2014 Commercial Division decision by Justice Ramos, the court granted the defendant’s motion to dismiss.The plaintiff, a Korean company, brought the action to recover $30 million in losses it suffered through its investment in credit-linked notes that the defendant created, arranged, marketed and sold. After it suffered the loss, the plaintiff… Continue Reading

MBS Claims Not Barred By German Statute of Limitations

Posted in Banking, CPLR 3211, Discovery, Financial services, Fraud, Misrepresentation, Motion to Dismiss, New York, Rescission, Schweitzer, Melvin L., Statute of Limitations

In a November 26, 2013 Commercial Division decision by Justice Schweitzer, the Court partially granted a motion to dismiss claims arising from a residential mortgage backed securities offering.  The plaintiff brought claims sounding in fraud, fraudulent concealment, negligent misrepresentation, and aiding and abetting fraud.  Defendants moved to dismiss for failure to state a cause of… Continue Reading

Court Applies Dutch Statute-of-Limitations Law to RMBS Case, Finds Issue of Fact

Posted in Aiding and Abetting, Financial services, Fraud, Misrepresentation, Motion to Dismiss, New York, Schweitzer, Melvin L., Statute of Limitations

In a November 30, 2012 Commercial Division decision by Justice Schweitzer, the Court granted in part and denied in part a motion to dismiss the complaint of Plaintiff Dutch pension fund (“ABP”) by Defendant issuer of residential mortgage-backed securities (“Credit Suisse”).  ABP alleged it relied on a series of fraudulent misstatements made by Credit Suisse… Continue Reading

RMBS Certificate Purchaser’s Claims Against Goldman Sachs Survive Motion to Dismiss

Posted in Financial services, Fraud, Misrepresentation, Motion to Dismiss, New York, Rescission, Schweitzer, Melvin L., Statute of Limitations

In a November 26, 2013 Commercial Division decision by Justice Schweitzer, the Court granted in part and denied in part Defendants’ motion to dismiss the claims of Plaintiff, a German purchaser of residential mortgage-backed security certificates from Defendants.  Plaintiff asserted causes of action premised on allegations that Defendants knew that metrics and representations they made… Continue Reading

Fall-out from Madoff Ponzi Scheme: Gross Negligence and Breach of Fiduciary Duty Claims against Bank of New York Mellon Dismissed

Posted in Breach of Fiduciary Duty, Class Action, Documentary Evidence, Failure to State a Claim, Financial services, Fraud, Friedman, JSC, Marcy S., Gross Negligence, Motion to Dismiss, Negligence, New York, Uncategorized

In an April 15, 2014 Commercial Division decision by Justice Friedman, the court granted the defendant’s (“BNYM’s”) motion to dismiss the complaint. The plaintiffs, three law firms (the “Firms”), were assigned the voluntarily dismissed claims of three related investment funds (the “Rye Funds”), whose limited partners comprised two subclasses in a consolidated federal class action… Continue Reading