COVID-19 continues to generate litigation in a variety of contexts in the Commercial Division. Only two weeks ago did our colleague Madeline Greenblatt author a blog about COVID-19 not excusing commercial rental obligations. Now, in what appears to be a case of first impression in New York at least, Justice Timothy S. Driscoll ruled in
motion to dismiss
Class Action Lawsuit Dismissed: Commercial Division Finds Company’s Alleged Misrepresentations and Omissions During Stock Sale Non-Actionable Under Securities Law

Many of us have previously heard the expression that there is a fine line between fact and fiction. In securities law that holds especially true where companies that risk walking the “fine line” in their registration statements and prospectuses could find themselves liable to their stockholders.
In a recent decision, Justice Barry R. Ostrager granted…
Legal Malpractice: Attorneys Cannot Be Blamed for Client’s Bad Decisions

Winning at the blame game is difficult to do. This holds especially true where the “blame game” is actually a claim for legal malpractice.
In a recent decision, the First Department affirmed Justice Sherwood’s Orders, which granted defendants’ motions to dismiss the complaint against them. In Binn v. Muchnick, Golieb & Golieb, P.C.,…
Beneficiary To A Trust Lacks Standing To Collect Unpaid Debt

The poet, Robert W. Service once wrote that “a promise made is a debt unpaid.” The question that remains is: Who gets to collect on that unpaid debt?
The issue of standing to collect on a debt owed to a beneficiary of a trust recently arose in Zachariou v Manios where plaintiff (a resident of
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Shareholders Beware: Serve Pre-Litigation Demands or Be Prepared to Plead Demand Futility with Particularity

In a recent case, Gammel v Immelt (2019 NY Slip Op 32005[U]), shareholders of General Electric Company (GE), brought a derivative shareholder action against the members of GE’s board of directors and various committees charged with overseeing GE’s business operations. Plaintiffs alleged causes of action sounding in gross mismanagement and breach of fiduciary duty, among…
Dismissed: The Tragic, True Story of Direct and Derivative Claims Jumbled Together Beyond Recognition

Much has been written about the pleading requirements unique to shareholder derivative lawsuits. For example, a derivative complaint must allege the plaintiff’s standing as a shareholder at all relevant times. Demand upon the board, or its futility, must also be pled with sufficient particularity. But fundamentally, a complaint may not assert direct claims derivatively,…
Back to Basics: Long-Arm Statute 101

Reflecting on your first year of law school, you begrudgingly remember learning about personal jurisdiction and the long-arm statute. As a commercial litigator, one of your first questions in representing a defendant should be: Does this court have jurisdiction over my client? If the answer to that question is no, then of course, you…
Are There Heightened Pleading Requirements When Alleging Consequential Damages Against an Insurer in a Coverage Dispute? “No”, Says the First Department

Are “consequential damages” available on contract claim against an insurer in an action brought by an insured for breach of a commercial liability policy? In D.K. Prop., Inc. v. National Union Fire Ins., a recent case out of the First Department, the answer is a resounding “yes”. There, the complaint alleged two causes of…
“Unnecessary and Inappropriate”: The declaration no one wanted

Your client wants to recover damages for breach of contract and demands that you assert as many causes of action as possible. In addition to the breach cause of action, you consider a declaratory judgment claim, right? Wrong! The Second Department has held time and time again that “[a] cause of action for a…
Universal Obtains More Than It Bargained For in Dealings with Cash Money Records: Potential Liability for Unpaid Drake Profits

For those unfamiliar with what today’s young kids are listening to, Aubrey “Drake” Graham is one of the most commercially-successful recording artists of all time, with multiple multiple-platinum records to his credit. For frame of reference, Drake’s recent album “Scorpion,” on its first day of release, was streamed over 300 million times on Apple Music…