When Attorneys Go (Way) Too Far

Recently, I attended a non-party deposition in a commercial litigation matter arising out of a dispute over who is the rightful owner of a particular property in New York. As is often the case, the attorney conducting the deposition was less than thrilled at the answers given by the witness. So, first he tried to [...]

How to Prove a Negligent Misrepresentation Claim Under New York Law

Before addressing how you prove a negligent misrepresentation claim, we first have to define what it is – and what it isn’t.
Unlike its cousin, the fraud claim, negligent misrepresentation does not require a showing of malicious intent or recklessness by the defendant; rather, it requires that the plaintiff prove the following by a preponderance of [...]

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 [...]

Constructive Fraud: A Lesser-Known, But Powerful Tool in New York To Recover Money That You’re Owed

Many small businesses’ recurring nightmare, particularly in this economy, looks something like this:
Debtor D (we’ll call him “D,” for short) owes you tens of thousands of dollars for product that you delivered months ago. When you inquire as to what the delay is in receiving payment, you get a run-around, and ultimately find out that [...]

Can An Internet Service Provider Be Held Liable For Defamatory Statements Posted On Its Website Under New York Law?

In Shiamili v. Real Estate Group of NY, Inc., an opinion issued by New York’s Appellate Division, First Department (which covers both New York and Bronx Counties), answered this question with an unequivocal ‘no’ – the internet services provider (or “interactive computer service) cannot be held liable for defamation (or unfair competition) unless the internet [...]

NY County Court Explains Why Whistleblower Protection Clause In Employee Manual May Be Worthless

In Candela v. Banco Industrial de Venezuela C.A., the New York County trial court’s decision to dismiss a breach of contract and wrongful termination claim by a bank employee serves a clear warning to at-will employees everywhere: know your rights and what you must do to protect them before you are fired. Conversely, the decision [...]

New York Federal Judge Allows Piercing the Corporate Veil Claims To Proceed – For Now

In light of my previous columns (see, e.g., Piercing the Corporate Veil – Critical Facts That You Will Need to Prove Your Case and, from earlier today, No Personal Liability For Corporate Fraud, Court Holds) setting forth some of the difficulties in piercing the corporate veil, here’s a “hot-off-the-presses” decision from a Federal judge in [...]

No Personal Liability For Corporate Fraud, New York Federal Court Holds

Can the president of a small  company  be held personally liable for the company’s issuance of dishonored checks? Not unless the plaintiff can prove that this individual officer was personally involved in the checks’ issuance, said  a New York Federal Judge.
In Interstate Foods, Inc. v. Lehmann, a decision that was recently published in the New [...]

Westchester Court Refuses To Let Defendant Off The Hook On Fraud Claims

In a case with salacious – and all-too-common facts – that was reported in this week’s New York Law Journal, a Westchester County court declined to dismiss the plaintiff’s claim that the defendants were diverting their assets in a desperate attempt to avoid a judgment that had been rendered against them in a breach of [...]

Continuous Representation: An Important Exception to Statutes of Limitation Under New York Law

As you may be aware, different types of claims have amounts of times that they may be sued upon under New York law. This is commonly referred to as a “statute of limitations.” Some of the more common examples of this include a breach of contract claim (6 years) and negligence (3 years). (Note:  malpractice [...]