Our February 2023 post “The Commercial Division Rejects Yet Another Insured’s Claim for Coverage for Covid-Related Revenues Losses” left readers wondering whether the New York Court of Appeals would uphold the First Department’s determination that COVID-19 does not qualify as “direct physical loss” for insurance purposes. One year later, the Court of Appeals
New York Commercial Division Round-Up Blog
News & Updates on Cases Decided in the Commercial Division of the New York State Supreme Court
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New York County Commercial Division Decision Highlights the Hurdles Defendants Face in Asserting Fraudulent Inducement Defense to Breach of Contract
A recent decision from New York County Commercial Division Justice Joel M. Cohen highlights the hurdles that defendants face in trying to assert a fraudulent inducement defense to a breach of contract claim. Justice Cohen’s decision also reinforces the potential benefits plaintiffs can enjoy by moving for partial summary judgment early, before fact discovery is completed.…
New York’s Long-Arm Jurisdiction Extends its Reach
The scope of New York’s long arm jurisdiction may be broader than you anticipate. In State of New York v. Vayu, 2023 N.Y. Slip Op. 801, 2023 WL 1973001 (February 14, 2023), the New York Court of Appeals, in a 5-1 decision, overturned Supreme Court’s and the Third Department’s decisions to dismiss a contractual dispute…
The Commercial Division Rejects Yet Another Insured’s Claim for Coverage for Covid-Related Revenues Losses
Does the business harm caused by COVID-19 qualify as “direct physical loss” for insurance purposes? In Spirit Airlines, Inc. v. American Home Assurance Company, Index No. 655755/2021, Commercial Division Justice Robert R. Reed held that the answer is no. In a decision announced on the record at an August 18, 2022 oral argument and entered on September…
New York Courts Continue to Assert Personal Jurisdiction over Foreign Banks
By Shin Hahn
On January 13, 2023, the New York State Commercial Division issued a decision in Bangladesh Bank v. Rizal Commercial Banking Corp., et al., Index No. 652051/2020, that continued New York courts’ tendency to assert personal jurisdiction over foreign banks, even if their only relationship with New York is having correspondent bank accounts.
In Bangladesh Bank,…
Commercial Division to Adopt New Rule Requiring Interlineation of Responsive Pleadings
Effective September 12, 2022, the New York Commercial Division Rules will require parties preparing responsive pleadings to “interlineate” the allegations which they are responding to within the responses themselves. Under new rule 202.70(g), titled “Interlineation of Responsive Pleadings”, counsel will essentially be required to restate the allegations of the complaint before responding to them in an…
Judgment Creditors Beware: Moving For Contempt May Be Within Reach, But Difficult To Grasp
In the New York County Commercial Division, Justice David B. Cohen’s ruling in B&M Kingstone, LLC v. Mega Int’l Comm. Bank Ltd., 2022 NY Slip Op. 30481(U) (Sup. Ct. N.Y. Cnty. 2022) makes clear that New York courts can compel New York branches of non-US banks to disclose information relating to accounts or assets held…
The Changing Landscape of Electronic Service
For a moment in March 2020, litigation stopped abruptly when the first case of COVID-19 was confirmed in New York. Within a matter of weeks, the New York State Courts shifted to online operations and, amazingly, the administration of justice continued virtually. Now, nearly two years later, the use of technology to conduct remote hearings…
New York Courts Continue to Enforce Broad General Releases, Even When Claims are Unforeseeable at the Time of Contract Execution
By Meghan Stuer & Ira Schulman
In Chadha v. Wahedna, 2021 NY Slip Op. 50509(U) (Sup. Ct. N.Y. Cnty. 2021), Justice Ostrager of the New York County Commercial Division, dismissed Plaintiff Nilsa Chadha’s (“Plaintiff”) claims in their entirety due to Plaintiff’s execution of a general release.…
Signing Contracts as a Representative May Lead to Individual Liability
Tharunidhar Narravula et al v. Perosphere Technologies, Inc. et al, Index No. 900410-21, Supreme Court, Albany County
In Narravula v. Perosphere Tech., 2021 NY Slip Op 50510(U) (Sup. Ct. Albany Cnty. 2021), Justice Richard M. Platkin of the Albany County Commercial Division reinforced the textbook rule that that an individual who signs a contract as…