In recent years, the New York court system has endorsed alternative dispute resolution (“ADR”) as a way to increase efficiency in the court system, making ADR presumptive in most civil cases. As a pioneer of efficiency, the Commercial Division has reinforced – through the adoption of multiple ADR-related rules and rule amendments – its “strong
Justice Emerson
The Ball is in Who’s Court?: Commercial Division Denies Plaintiffs’ Attempt to Invalidate Forum-Selection Clause in Promissory Notes
Most commercial contracts contain a choice of law provision and/or forum-selection clause. Under New York law, it is well recognized “that parties to a contract may freely select a forum which will resolve any disputes over the interpretation or performance of the contract” (Brooke Group Ltd v JCH Syndicate 488 et al). Recently,…
Equitable Tolling: “Estopping” the Clock from Running on Your Claims
Generally speaking, a court does not have the discretion to extend a statute of limitations. A court can, however, consistent with its inherent equitable powers, preclude a defendant from asserting a statute of limitations defense where the defendant’s own intentional misconduct prevented the plaintiff from timely filing suit. This equitable doctrine, known as equitable…
Court Finds Buyer Not Liable for Seller Under Successor Liability Theory
When buying a business, purchasers must take into consideration the possibility of “successor liability” – that is, the buyer’s assumption of the seller’s liabilities and prior conduct upon purchasing a corporation.
In New York, the general rule is that a purchaser of the assets of another corporation is not liable for the seller’s liabilities (…
Affirmatively Plead Your Defenses, or Risk “Waiving” Them Goodbye
Many litigants are familiar with the well-settled rule that an affirmative defense will be waived if it is not included in a CPLR 3211(a) motion to dismiss or in the answer (see CPLR 3211[e]). And so, lawyers tasked with drafting an answer will often consult a “checklist” to ensure that all relevant affirmative…
Summer Day Camp Derivative Headed to Trial
“Sibling relationships are complicated. All family relationships are. Look at Hamlet.” Maurice Saatchi.
A recent decision in Greenhaus v. Gersh out of the Commercial Division, Suffolk County, is yet another example. This time, the business is a summer day camp located on the north shore of Long Island in Huntington, New York. Almost…
Successful Challenge To a Forum-Selection Clause Requires a “Strong Showing” – So Select Your Forum Wisely
Forum-selection clauses were once widely disfavored by many courts on the theory that such provisions operated to improperly divest the court of jurisdiction. But now, it is well-recognized that parties to a contract may freely select a forum of their choosing to resolve a dispute arising from that contract. In fact, forum-selection clauses are now …
Court Confirms Arbitration Award Against Respondent Who Failed to Check Her Mail
A recent decision out of the Suffolk County Commercial Division underscores the importance of staying on top of your mail if you plan on leaving New York for an extended period of time. Last week, in Matter of New Brunswick Theological Seminary v Van Dyke, 2018 NY Slip Op 51204(U), Justice Emerson confirmed…