New York’s High Court Makes It Easier to Prove Business Fraud Claim

They may have been naive, but they’re entitled to a shot at vindication before a jury, held New York’s Court of Appeals in DDJ Management LLC v. Rhone Group, LLC. In this case, the plaintiffs sued to recover their losses after learning that the $4o million loans they extended to the defendants turned out to [...]

Fee-Splitting Agreement May Be Illegal, But Doctor Can Still Recover Fair Value, Says NY Court

In Rosenberg v. Harris, an August 17 decision in a breach of contract case between two dentists – one of whom was renting office space and equipment from the other – a New York County court issued a fascinating ruling: the agreement between the two doctors, which called for the tenant to pay a portion [...]

How One Filmmaker’s Failure to Get a Written Agreement Doomed His NY Breach of Contract Case

There are instances, like the case discussed in my recent blog post, “No Written Agreement? No Problem, Says NY Court,” where the failure to reduce your agreement to writing is not fatal to a breach of contract claim under New York law. But there are other cases, like Springer v. Linden Seventh Day Adventist Church, [...]

No Written Agreement? No Problem, Says NY Court

If you take an unreasonable position and refuse to pay for services that were rendered, you should be prepared to have a court rule against you. And that’s exactly what happened in John Anthony Rubino & Co. CPA v.  Schwartz (a decision that is scheduled to appear in tomorrow’s edition of the New York Law [...]

The Most Formidable Defense to a Tortious Interference Claim in New York

As you might have guessed, as a practical matter it is far from simple to prove a tortious interference with contract claim under New York law, and here’s why: The plaintiff must prove that the defendant both intentionally AND without justification induced a third party to break their contract with the plaintiff. Why is that [...]

Why “Mandatory” Arbitration Clauses in NY Are Just That – Mandatory

I was recently contacted by a man who was dealt with unfairly by a much larger company he was trying to do business with. The bigger company, on a whim, decided that they didn’t want to do business with him anymore, so they came up with every reason they could muster – some legitimate, some [...]

Liars Beware: In Breach of Contract & Fiduciary Duty Case, NY Federal Judge Upholds Nearly $2M Sanction

Let there be no mistake: if you’re lying in order to stonewall your adversary, and it’s obvious to a Federal Judge, you do so at your own peril. That is the clear implication of the Court’s holding in Shcherbakovskiy v. Seitz, et al. In that case, the defendant counterclaimed against the plaintiff, suing to recover [...]

Victoria’s Secret(ly) (and Tortiously) Interfered With Contract, NY Business Claims

Today’s New York Daily News is reporting that Victoria’s Secret has been sued for inducing the Chinese supplier for a New York and New Jersey-based shoe company to break its 25 year relationship with the shoe company in favor of an exclusive deal with Victoria’s Secret. Now, let’s not be naive; the reason the story [...]

Finding Proof Insufficient to Pierce the Corporate Veil, Suffolk Court Dismisses Breach of Contract Claim

If the unsubstantiated claims of this plaintiff are actually true, then I feel bad for the plaintiff. But, as noted by the Court, therein lies the problem: the allegations are unsubstantiated. In Lecce Penn Co. SPA v. Adrenaline Marketing & Promotions, Inc., the plaintiff sued in breach of contract and fraud to recover over $300,000 [...]

Why It Is So Difficult to Invalidate a Mandatory Arbitration Clause in New York

Over the last few months, I’ve been asked why certain mandatory arbitration provisions in an employment agreement couldn’t be invalidated on the grounds that the employees were “forced” to sign it against their will on threat of losing their job. The reason is fairly simple: the courts – beginning with the United States Supreme Court [...]