When You Can Fight a Subpoena in New York

No one likes being subpoenaed. No one. And non-party (i.e., you’re not one of the parties named in the case, which means you’re neither a plaintiff nor a defendant) subpoenas that are issued in the context of a business litigation or commercial litigation matter can be quite disruptive because the documents that may be sought [...]

What is “Waiver” Under New York Law?

I get asked this question a fair amount, although it is rare that the person asking the question calls this doctrine by its formal, legal name. (Usually, it is more along the lines of “Didn’t they forfeit their right to complain …”). As you can probably surmise, waiver most often comes up in the context [...]

When You Can Incur Personal Liability For a Corporate Debt In New York

In the last year, I’ve been asked a few times whether you can incur personal liability merely by virtue of signing an agreement on  behalf of a corporation. Well, you need wonder no more, as a Suffolk County trial court in Cutler v. Collura-Repp has laid out the law on this issue in no uncertain terms: [...]

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 [...]

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, [...]

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 [...]

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 [...]