How Not Being Licensed Can Cost You Your Fee In New York

I find it sad when people learn a lesson the hard way.
On the other hand, I understand why the Court, and the New York Legislature set up the rules in this fashion: simply put, if they allowed unlicensed contractors to still get paid for work that requires a license, then that would effectively abrogate the [...]

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 [...]

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 that they [...]

How Damages for the Breach of an Employment Contract Are Calculated Under NY Law

If you read my previous blog post, “How a Demotion Can Be Deemed a Breach of Employment Agreement Under NY Law,” you are probably wondering (or should be) the following: let’s assume a fact finder (i.e., whether a judge or jury) finds that my employer breached my employment agreement. What damages can I reasonably expect [...]

NY Appeals Court: Don’t Bother Bringing Business Fraud Claims Unless You Can Back It Up

In a June 15 decision in Callisto Pharm. Inc. v. Picker, New York’s Appellate Division, First Department affirmed the trial court’s ruling that dismissed the plaintiff’s claims that its employee was secretly negotiating with their business partner, and therefore liable in breach of contract, fraud and breach of fiduciary duty. In addition, the plaintiff claimed [...]

How New York Courts Determine Whether an Arbitration Clause is Enforceable

When your contract has been breached, your first reaction might very well be to bring a lawsuit in State or Federal Court. But that course of action may not be available, particularly if your written contract contains a clause mandating that all disputes be resolved by arbitration.
So, you ask, under what circumstances are those clauses [...]

If You Have a Written Contract, You Can’t Pursue Unjust Enrichment Claim, Says NY Court

Although, in the legal world, you can generally pursue different theories – even if they are inherently at odds with each other – to try and recover your losses, there are some exceptions to that rule. And the realm of breach of contract – at least in New York – is precisely one circumstances. You [...]

At What Point Does a Contract Become Enforceable Under NY Law? (It’s Not What You Think)

Although you might think that the answer to this question is really simple – it’s when both sides have a fully signed agreement – you’d be terribly mistaken.
So, here’s the rule, as recently summarized by a New York County trial court:
“The requirements for formation of an enforceable contract are:
(1) at least two parties with [...]

When Negotiated Terms Don’t Make It Into Your New York Contract

So you’ve spent weeks, maybe even months, of back and forth negotiations on this deal … and you’ve finally reached an agreement. And after the euphoria of finally closing the deal and closing on the contract wears off, a problem arises.
And when you go back to look at the contract you realize that some of [...]

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 [...]