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Despite Leaving Client Unnecessarily Exposed to Harm, Bad Faith Claim Against NY Insurer Is Dismissed

In a recent decision, New York’s Appellate Division, Second Department showed once again just how powerful New York’s insurance lobby is, and how, under the current structure of the law in New York, an insurer has almost no incentive to protect its clients – the insureds – by negotiating claims in good faith. Quite the [...]

In Breach of Employment Contract Case, NY Court Holds Arbitration Clause Unenforceable

It is no secret that mandatory arbitration clauses have essentially become standard fare in business contracts, particularly in the employment or consultant context. But, as a Federal appeals court recently held, “It is well-accepted that although the presumption in favor of arbitration is strong, “the obligation to arbitrate nevertheless remains a creature of contract.” Louis [...]

NY County Court Allows Party to Break its Settlement Agreement

Every once in a while, I come across a case that really burns me, particularly when it involves a party (or his attorney) not keeping his word – and getting away with it. In 175 Mulberry Realty v. Kam Cheung Construction, the parties had apparently agreed to settle their long-standing breach of contract action. The [...]

When Can You Rescind A Contract Under New York Law?

Although it is far from common knowledge, there is another option that may be available to recoup your losses in the breach of contract context, particularly in the event that a damages award will not make you whole. And that is through is the equitable doctrine of rescission, which aims to restore the “status quo [...]

How “Good Faith” Is Implied in New York Contracts

As you may know, under New York law, every contract carries an implied covenant (i.e., promise) of “good faith and fair dealing.” 511 West 232nd Owners Corp. v Jennifer Realty Co., 98 NY2d 144, 746 NYS2d 131, 773 NE2d 496. But what on earth does that mean? It’s actually rather tricky; in fact, New York’s [...]

Is My Non-Compete Agreement Enforceable Under New York law?

In the wake of the massive layoffs of the last few years, I’ve been asked this question an awful lot. (If you’re looking for a link to what a typical non-compete clause looks like, keep reading). Fortunately, the Court of Appeals – New York State’s highest court, has written rather extensively on the subject. In [...]

How to Prove a Breach of Contract Case in New York

Although the range of different types of contracts is quite vast, a common thread unites them: the basic elements of a contract, and what you need to prove in the event that the contract is breached. In general terms, in order to establish a breach of contract claim under New York law, a plaintiff must [...]

When Illegal Agreements Can Still Be Enforceable in New York

This was just one of the issues that New York Federal Judge Jack Weinstein had to address in Globaltex Group Ltd. v. Trends Sportswear Ltd., a commercial litigation case where the plaintiff sought to recover payment for goods that it shipped. The facts of this case were – and are – rather fascinating. In this [...]

How Much Writing is Enough to Qualify as a “Written Agreement” Under NY Law?

Not terribly much, according to a recent decision from a Queens County trial court. In Phone Card America, Inc. v. Quality Discount Equipment Sellers, LLC, the defendant sold plaintiff a specialized printing press for the express purpose of printing phone cards. Unfortunately, despite plaintiff’s numerous efforts to have the press’s problems  both diagnosed and repaired, [...]