Four of the proposed amendments to the Commercial Division Rules, which were discussed in an earlier blog post while the rules were under consideration by the Office of Administration, were adopted over the summer and have now gone into effect in the Commercial Division.
Continue Reading Commercial Division Rolls Out Four New Rules Covering Expert Disclosures, Temporary Restraining Order Requirements, Forum Selection Clauses and Trial Length

In Matter of CDR Créances S.A.S. v First Hotels & Resorts Invs., Inc., 2016 Slip Op. 04888 (1st Dep’t June 21, 2016), the Appellate Division reversed a December 11, 2014 Order by New York County Commercial Division Justice Lawrence K. Marks, which denied respondent First Hotels & Resorts Investments, Inc.’s (“First Hotels’”) motion to dismiss the action for lack of personal jurisdiction.  The action related to an $82 million loan made in 1991 by a predecessor in interest of petitioner CDR Créances S.A.S. (“CDR”) to Euro-American Lodging Corp. (“Euro-American”).  The loan was made to enable Euro-American to acquire Manhattan real estate and convert it into a hotel.  After Euro-American defaulted on that loan, CDR obtained a foreign judgment against Euro-American that CDR domesticated in New York.  CDR subsequently commenced an action and obtained a New York judgment against a handful of individuals affiliated with Euro-American based upon allegations that those individuals engaged in a conspiracy to convert the proceeds of the loan for their own benefit.  One of those individual judgment debtors was Maurice Cohen, one of the principals of Euro-American.
Continue Reading Be Sure to Sue Before Your Defendant Moves: Appellate Division Finds No Jurisdiction Over Defendant Company After Sale of Its New York Assets

The Commercial Division Advisory Council continued its revamp of the Commercial Division Rules on October 14, 2015, when it implemented amendments to 22 NYCRR § 202.70(b) and (c).  As we discussed in this blog when the amendments were proposed in April, the amendment to 22 NYCRR § 202.70(b) subjects actions to compel or stay domestic arbitration hearings and actions to affirm or disaffirm domestic arbitration awards to the same eligibility criteria as other matters.  Such actions must involve equitable and/or declaratory relief, or meet the monetary threshold of $500,000 in New York County, $200,000 in Nassau County, $150,000 in Kings County, $100,000 in Suffolk and Queens Counties and the Eighth Judicial District, and $50,000 in Onondaga and Albany Counties.  Those actions must also involve one of the commercial issues set forth in 22 NYCRR § 202.70(b), meaning the subject matter of the case must involve principal claims for: breach of contract or fiduciary duty, fraud, misrepresentation, business tort, statutory and/or common law violation where the breach or violation is alleged to arise out of business dealings, transactions governed by the Uniform Commercial Code, transactions involving commercial real property, shareholder derivative actions, commercial class actions, business transactions involving commercial banks and other financial institutions, internal affairs of business organizations, accounting and legal malpractice arising from commercial representations, environmental insurance coverage, or dissolution of business entities.
Continue Reading Commercial Division Rules Revamp Encourages International Arbitration Matters In The New York County Commercial Division

In AP Services, LLP v. Lobell et. al, No. 651613/2012, 2015 NY Slip Op 31115(U) (N.Y. Sup. Ct. June 19, 2015) (argued Feb. 21, 2014), Justice Friedman, applying Delaware Law, denied a motion to dismiss plaintiff AP Services, LLP’s first cause of action alleging breach of fiduciary duty against the defendants, former directors of Paramount Acquisition Corp., while granting dismissal of the second cause of action against them for allegedly aiding and abetting the breach of fiduciary duty.
Continue Reading Justice Friedman Allows Breach of Fiduciary Duty Claim to Proceed Against Corporate Directors Under Delaware Law

In Justinian Capital SPC v. WestLB AG, etc. et al., 2015 N.Y. Slip Op. 04381 (1st Dep’t May 21, 2015), the Appellate Division affirmed the February 25, 2014 decision of the New York County Supreme Court, Commercial Division (Kornreich, J.), 43 Misc. 3d 598, holding that actual payment for the transfer of rights to a legal claim is required in order to qualify for the champerty doctrine’s safe harbor provision.
Continue Reading Pay to Play: Appellate Division Upholds Ruling that Payment is Required to Qualify for Champerty Safe Harbor Provision

The Commercial Division Rules are once again the subject of several proposed amendments, as detailed below.  While these proposals are not as far-reaching as some of the rule changes enacted in 2014, they nonetheless raise important practice considerations for parties and their counsel engaged in practice before the Commercial Division.  Expect to see these new rules take effect later this year.
Continue Reading Commercial Division Practice Continues to Shift Towards Federal Standards with Four Proposed Rule Changes

On Tuesday, April 7, 2015, Justice Anil C. Singh of the New York Supreme Court was appointed to the New York County Commercial Division.  Justice Singh succeeds Justice Melvin Schweitzer, who retired last year.  According to his judicial biography, Justice Singh is a 1986 graduate of Antioch School of Law in Washington, D.C.
Continue Reading Justice Anil C. Singh Appointed to New York County Commercial Division