As noted in the title, civil RICO claims are on such a bad losing streak at the pleading stage in the Commercial Division that they’re beginning to rival the New York Mets. And that’s coming from a die-hard Mets fan.
As my colleague, Viktoriya Liberchuk, recently blogged, judges in the Commercial Division are quick
A recent decision from the New York County Commercial Division reminds litigants that even under New York’s liberal discovery standards, sensitive business information like client lists is not automatically discoverable. In Slice Wireless Services, LLC v. Yakubov, et al. (Index No. 656506/2017, Apr. 22, 2026), Justice Robert R. Reed addressed the outer limits of discovery obligations, emphasizing the protection afforded to proprietary information and the practical boundaries of what a party must produce in discovery. The Dispute Plaintiff Slice Wireless Services, LLC sought expansive post-deposition discovery from Defendants, including additional corporate tax records; and a complete list of Defendant Made by Wifi, Inc.’s clients from 2017 through 2023. Plaintiff argues this information was material and necessary for trial preparation because it went directly to the core issues of liability and damages. Defendants resisted, arguing they had already produced all relevant materials within the applicable timeframe (particularly through 2019, when any restrictive covenants arguably expired). They further contended that the client list constituted protected, proprietary information and that no such comprehensive list even existed in the form Plaintiff demanded. The Court’s Ruling The Court denied Plaintiff’s motion, refusing to compel supplementation of discovery responses or production of Defendant Made by Wifi, Inc.’s client list. Its reasoning rested on two key principles: (1) discovery is limited to materials within a party’s “possession, custody or control,” and (2) sensitive commercial information such as client lists warrants protection.
The Court reaffirmed that under CPLR 3101, discovery is broad, but not unlimited. A party is only required to produce materials within its “possession, custody, or control,” including what courts have termed “constructive possession”—the documents a party has the practical ability to obtain (Commonwealth of N. Mariana Is. v Can. Imperial Bank of Commerce, 21 NY3d 55, 62-63 [2013]). The Court found that Defendants had met this obligation. With no evidence that their prior responses were incomplete, inaccurate, or misleading, there was no basis to compel supplementation under CPLR 3101(h). The decision underscores a practical reality: discovery obligations are tethered to what actually exists and is accessible to the responding party—not to what might exist in theory.
The Court also refused to compel production of the Defendants’ client list. Citing Leo Silfen, Inc. v Cream, 29 NY2d 387, 392 [1972], the Court recognized that client lists may qualify as trade secrets and constitute protected proprietary information. Importantly, the Court did not rely solely on the sensitive nature of the information. It also highlighted a threshold evidentiary gap: there was no evidence that a comprehensive client list for 2017 through 2023 even existed. Given the nature of Defendants’ business operations, the requested document may have been more conceptual than real. Ultimately, the sensitive nature of the information and the absence of evidence that the client lists existed made the difference. The Court declined to order production “at this juncture,” suggesting caution now, but flexibility down the road. Implications for Commercial Litigants This decision carries practical lessons for parties engaged in discovery disputes in the Commercial Division: First, relevance alone is not enough. Even where requested information goes to the “core” of a claim, courts will weigh the burden, sensitivity, and actual availability of the material. Litigants must show that the discovery is both within the responding party’s “possession, custody or control” (Canadian Imperial Bank of Com., 21 NY3d at 62-63) and is “material and necessary”(CPLR § 3101 [a]). Second, proprietary business information remains protected. Client lists continue to receive heightened scrutiny (Leo Silfen, Inc., 29 NY2d at 392). The Court declined to compel production where the information is sensitive, and its very existence is not established. Third, courts will enforce the “possession, custody and control” boundary. The Court’s decision reinforces that parties are not required to create documents that do not exist or to compile information into new formats simply to satisfy an adversary’s demand. Conclusion Slice Wireless serves as a reminder that New York’s liberal discovery regime has meaningful limits. Courts remain attentive to both the practical realities of document possession and the need to protect sensitive commercial information. The takeaway is clear: discovery operates at the intersection of broad disclosure rules and the practical limits of what exists, is accessible, and warrants protection.
Earlier this month, commercial litigators and judges from across New York headed to the Sagamore Resort on Lake George for the NYSBA Commercial and Federal Litigation Section’s 2026 Spring Meeting. The Spring Meeting featured a strong lineup of timely presentations focused on issues litigators commonly face – from appellate practice and bankruptcy litigation to ethics
Every litigator has experienced a technology hiccup at an inconvenient moment. But courts have made clear that vague references to “technical difficulties” will not excuse a failure to appear—and once a default judgment is entered, vacating it is an uphill battle. The recent case of Chen Dongwu v New York City Regional Ctr. LLC offers
When seeking a default judgment, parties often assume that an unanswered complaint puts them in the driver’s seat for a quick and early victory. But as practitioners in the Commercial Division are well aware, courts retain discretion to deny a motion for default judgment if the record raises questions about service or if the defendant
I have a soft spot for civil RICO: treble damages, enterprise allegations, the chance to elevate ordinary fraud into something operatic. But, as many of us have learned, civil RICO is not meant to transform ordinary commercial disputes into racketeering cases. Courts routinely dismiss such claims when plaintiffs fail to meet the statute’s strict pleading
Fiduciary duty claims between closely-held business owners are commonplace in litigation before the Commercial Division. A decision last fall from Suffolk County Commercial Division Justice James C. Hudson in Matter of Lehan v Montgomery serves as a professorial primer on the meaning and importance of fiduciary obligations between business partners.
The Dispute
Dix Hills Car
In settlement agreements, a valid release serves as a critical mechanism for resolving disputes between parties. By its terms, a release is intended to extinguish all claims, both those that are known and unknown to the parties at the time of execution of the agreement. When parties are represented by counsel and agree to a
Background
Manhattan Commercial Division Justice Robert R. Reed recently refused to enforce a settlement agreement purportedly reached by the parties via email in CoPilot Travel, Inc. v. Magstar Capital, LLC, 86 Misc. 3d 1271(A) [Supreme Court, New York County, 2025]. In CoPilot, the defendant Magstar attempted to persuade the court that the parties
The business judgment rule is a common-law principle that generally prohibits courts from questioning the propriety of actions taken by corporate directors and officers, provided those actions are taken in good faith, with honest judgment, and in the lawful and legitimate furtherance of corporate purposes. This doctrine is based on a recognition that courts are