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COVID-19’s Effect on New York Commercial Division

On March 13, 2020, Judge Lawrence K. Marks, the Chief Administrative Judge of the New York State Unified Court System, issued a memorandum announcing that he and Chief Judge Janet DiFiore have implemented a number of measures...more

Second Department Affirms Decision Declaring Invalid an Assignment of an LLC Interest

In Behrend v. New Windsor Group, LLC, the Second Department affirmed the denial of Plaintiff Julius Behrend’s (“Behrend”) motion for summary judgment in his action seeking a declaratory judgment that he held a membership...more

Second Department Applies De Facto Merger Doctrine and Veil Piercing in Recent Appeal

Introduction and Background - On January 29, 2020, the Second Department affirmed a Suffolk County Commercial Division decision applying both the de facto merger doctrine and the veil piercing doctrine. ...more

2/25/2020  /  Appeals , Corporate Veil , Mergers

Commercial Division Opinion Suggests that Subcontractor Can Potentially Recover From General Contractor and Property Owner for...

Suppose a property owner hires a general contractor for a time-sensitive project. The general contractor in turn hires a subcontractor. ...more

First Department Holds Source Code to Be a Trade Secret and Defines Bounds of Judicial Proceedings Privilege

On November 12, 2019, in BEC Capital, LLC et al. v. Bistrovic et al., 177 A.D.3d 438 (1st Dep’t 2019), the Appellate Division, the First Department issued a decision reversing an order of the Commercial Division and holding...more

Seventh Judicial District Assigns New Justice

Justice Craig Doran, the Administrative Judge of the Seventh Judicial District, assigned Justice J. Scott Odorisi to the Commercial Division. ...more

2/11/2020  /  Commercial Court , Judges

New Legislation Bans Waivers of Declaratory Relief in Commercial Leases on Public Policy Grounds

Last summer, we discussed a decision by the Court of Appeals that upheld the use in commercial leases of waivers of declaratory relief. ...more

A Year in Review: Top Commercial Division Blog Posts of 2019

2019 was a momentous year for the Commercial Division. Below are the top developments related to the Commercial Division that our blog covered in 2019....more

Commercial Division Applies Noerr-Pennington Doctrine to Dismiss Claim for Unlawful Retaliation

In Pozner v. Fox Broadcasting Co., Justice Saliann Scarpulla of the Commercial Division dismissed plaintiff Cliff Pozner’s (“Pozner”) retaliation claim, which alleged that counterclaims filed against him by defendant Fox...more

Commercial Division Declines to Stay Securities Case in Deference to Later-Filed Federal Action

In Matter of GreenSky, Inc. Sec. Litig., Justice Jennifer G. Schecter of the Commercial Division denied defendants’ motion to stay the state court action pending resolution of a later-filed, federal action involving virtually...more

Commercial Division Allows Successor Liability Claims to Proceed on “Mere Continuation” Theory

A corporation that acquires the assets of another is generally not liable for the pre-existing liabilities of the acquired corporation. However, as the Commercial Division’s recent decision in 47 East 34th Street (NY), L.P....more

Commercial Division Rules that Arbitration Awardee Lacked Standing to Enforce Award Based on Collection Procedures Agreed to in...

Arbitration is a creature of contract and, as such, enforcing an arbitral award requires strict adherence to the procedures set forth in the relevant agreements. This is true even where those procedures might preclude a...more

Commercial Division Prevents End-Run Around Rule Precluding Judicial Dissolution of Foreign Business Entities

In Matter of Raharney Capital, LLC v. Capital Stack LLC, the First Department held that New York courts lack subject matter jurisdiction over foreign company dissolution proceedings. ...more

The First Department Rules that Plaintiff Failed to Allege an Actionable Fiduciary Duty Claim

Last month, the First Department in Madison Sullivan Partners LLC v. PMG Sullivan St., LLC, 2019 N.Y. Slip Op. 04460 (June 6, 2019), affirmed the decision of former Commercial Division Justice Shirley Werner Kornreich that...more

Commercial Division Advisory Council Highlights the Benefits of the Commercial Division to the State of New York

The Commercial Division Advisory Council recently released a memorandum describing the benefits that the Commercial Division offers to the State of New York.  ...more

Appellate Division Holds that Arbitrator Has Power to Dissolve Partnership

In Matter of Capital Enterprises Co. v. Dworman, the Appellate Division, the First Department held that an arbitrator has broad discretion to order the dissolution of a New York general partnership, so long as the issue of...more

Commercial Division Justices Gather to Discuss Motion Practice

On Wednesday June 5, 2019, all seven of the New York County Commercial Division justices participated on a panel for the New York State Bar Association’s Commercial and Federal Litigation Section on “Motion Practice Before...more

Sharply Divided Court of Appeals Upholds Waiver of Declaratory Relief by Commercial Tenants

In a closely watched appeal, the Court of Appeals affirmed by a 4-3 vote that a waiver contained in a commercial lease of the right to bring a declaratory judgment action is enforceable and not contrary to public policy....more

New York Announces Statewide “Presumptive” Alternative Dispute Resolution Program

On May 14, 2019, the New York State Unified Court System announced that it will begin rollout and implementation of a “presumptive” alternative dispute resolution (“ADR”) program....more

Commercial Division Decision Applies Issues Frequently Considered on Motions to Dismiss

In considering a motion to dismiss related to a real estate development joint-venture gone bad, a recent decision by Justice Andrea Masley in 3P-733, LLC v Davis (No. 650800/2018 [N.Y. Sup. Ct., N.Y. Cty., April 2, 2019])...more

The First Department Reconsiders Approval of a Class Action Settlement

On April 11, 2019, the First Department unanimously affirmed a decision issued by Justice Shirley Werner Kornreich, formerly of the Commercial Division, which denied the plaintiffs’ motion for final approval of a class action...more

Commercial Division Decision Illustrates Potential Issues that May Arise in a CPLR Article 52 Turnover Order Proceedings

A party seeking to enforce a judgment against an asset of a judgment debtor that is held by a third party may petition for a turnover order through a special proceeding provided for by CPLR Article 52....more

Commercial Division Is Coming to the Bronx

At her annual State of the Judiciary speech held on February 26, 2019 at Bronx County Supreme Court, Chief Judge Janet DiFiore announced that the Commercial Division will be expanding to Bronx County, effective April 1, 2019....more

3/22/2019  /  Commercial Court , Judges

Commercial Division Dismisses Most Claims in Dispute Over Russian Oil Company

In Magomedov et al. v. Lebedev et al., an opinion dated February 19, 2019, Justice Saliann Scarpulla of the Commercial Division dismissed most claims related to a Russian oil joint venture as time-barred under the statute of...more

New Justice Assigned to Hear Commercial Division’s International Arbitration Matters

Following Justice Charles Ramos’s retirement from the Commercial Division at the end of last year, commercial practitioners have awaited an announcement reallocating responsibility for the Division’s international arbitration...more

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