Fiduciary Duty Established by Contract May Be Released by Contract, Too

In Stephanie Clegg v. Sotheby’s, 23-cv-01995, 2003 WL 8281487 (S.D.N.Y. Nov. 30, 2023), the Southern District of New York held that the fiduciary duties of a consignee could be defined by a written consignment agreement and further modified by subsequent written agreements between the parties… Read more

Federal Court Declines to Exercise Jurisdiction Over New York Plaintiffs’ Class Action Against Foreign Corporation Where NY Subsidiary Was Principally Liable for Plaintiffs’ Alleged Injuries

In St. John v. Adesa, Inc., 22-CV-1257 (E.D.N.Y. Sept. 21, 2023), the court dismissed plaintiff’s nascent class action under the Local Controversy Exception to CAFA jurisdiction, after joining defendant’s local subsidiary as a defendant… Read more

Court Grants Preliminary Injunction to Preserve Status Quo in Business Dispute

In Yee v. Chen, Index No. 704057/23 (N.Y. Sup. Ct., Queens Cnty. Sep. 27, 2023), the court granted a preliminary injunction to preserve the status quo of the parties’ business pending resolution of claims concerning misconduct by the managing member… Read more

Statute of Frauds Did Not Preclude Enforcement of Oral Agreement for the Payment of Money Over Period of Years

In Robinson v. Synergy Alternative Capital, LLC, 652043/2020 (N.Y. Sup. Ct., N.Y. County), the court held that the statute of frauds did not preclude enforcement of an alleged oral agreement to pay a discretionary bonus over a period of several years, where the company could have paid the bonus within one year… Read more

Electronic Service on Defendants Governed by Hague Convention Permissible when Physical Addresses Are Not Reasonably Ascertainable

In The Kyjen Company, LLC v. The Individuals, Corporations, Limited Liability Companies, Partnerships, and Unincorporated Associations Identified on Schedule A to the Complaint, 1:23-cv-00612-JHP (S.D.N.Y.), the Court permitted electronic service of process on certain foreign defendants, even though such service generally would have been prohibited under international law… Read more

Rescission of Contract Inappropriate Where Breach Did Not Defeat the Purpose of the Parties’ Agreement

In Argutto v. J.P. Hunter Co., Inc., Case No. 623638/2018 (Sup. Ct. Suffolk County, Sep. 22, 2022), the court denied a motion for summary judgment seeking rescission of a contract where the defendant’s breach, though consequential, was not so fundamental as to defeat the purpose of the contract… Read more

Summary Judgment in Lieu of Complaint Granted After Unopposed Showing of Default on Commercial Lease Guarantees

In 1619-1625 Amsterdam Avenue, LLC v. Costa Casvikes, Case No. 652037/2022 (July 7, 2022), the court granted an unopposed summary judgment in lieu of complaint to a plaintiff property owner seeking payment under two guarantees of a commercial lease… Read more

Conversion Claims Fail Where Duplicative of Breach of Contract Claims

In Westcon Grp., Inc. v. CCC Technologies, Inc., 7:19-cv-02303 (PMH) (S.D.N.Y. Sep. 12, 2022), the court granted summary judgment dismissing a conversion claim as duplicative of a cause of action for breach of contract… Read more

Claims Against International Cargo Broker Preempted by Montreal Convention

In A.S.A.P Logistics, Ltd. v. UPS Supply Chain Solutions, Inc., 20-CV-4553 (E.D.N.Y. Sep. 19, 2022), the court dismissed breach of contract and tort claims as preempted by the Montreal Convention… Read more

SDNY Awards Rule 11 Sanctions for Complaint over Speculative Allegations

In (RC) 2 Pharma Connect, LLC v. Mission Pharmacal Co., 1:21-cv-11096 (S.D.N.Y. Sep. 14, 2022), the district court imposed Rule 11 sanctions against plaintiff for filing pleadings based on speculative allegations of breaches of contract… Read more

Extrinsic evidence is inadmissible to contradict unambiguous contract terms; a party cannot anticipatorily breach a contract obligation that does not exist

In Art Works Inc. v. Al-Hadid, Index No. 651267/2021 (N.Y. Sup. Ct., N.Y. County, May 10 2022), the New York Supreme Court held that a consignment agreement did not give an art gallery an ownership interest in an artist’s consigned work. The court also held that a party’s insistence on agreement to terms for a mediation did not constitute anticipatory breach of the contract’s mediation provision… Read more

Online Reviews that Lowered Business’s Star Rating Were “Devious” But Not “Disparaging”

In SA Luxury Expeditions, LLC v. Schleien, 22-CV-3825 (S.D.N.Y. Aug. 29, 2022), the court held that fake Trust Pilot reviews that reduced plaintiff’s overall star rating but were not explicitly negative did not constitute “disparaging” remarks as defined by a prior settlement agreement between the parties… Read more