Claim Dismissed for Being "Conclusory and Lacking in Factual Specificity"

On May 3, 2018, the First Department issued a decision in Publications International, Ltd. v. Phoenix International Publications, Inc., 2018 NY Slip Op. 03204, dismissing a counterclaim for being "conclusory and lacking in factual specificity," explaining:

Even accepting the allegations as true and affording counterclaim plaintiff (Phoenix) every possible favorable inference, we find that the "manipulated returns" counterclaim, which alleges that the drop in merchandise returns was the result of a scheme on the part of counterclaim-defendant Publications International, Ltd. (PIL) to avoid its obligations under section 4.9 of the asset purchase agreement, is conclusory and lacking in factual specificity.

(Internal citations omitted).

Cases in the Commercial Division of the New York courts more often that not involve a motion to dismiss at the outset, so this is a big part of our practice. Contact Schlam Stone & Dolan partner John Lundin at jlundin@schlamstone.com if you or a client have questions about seeking or opposing dismissal of a commercial lawsuit.