Court Declines to Dismiss Action Brought By Summons With Notice On Ground That it Was Insufficiently Detailed

On August 14, 2018, Justice Scarpulla of the New York County Commercial Division issued a decision in Jobar Holding Corp. v. Halio, 2018 NY Slip Op. 31982(U), declining to dismiss an action brought by summons with notice, finding that it gave sufficient notice, explaining:

As the purpose of the notice is simply to provide the defendant with at least basic information concerning the nature of plaintiffs claim and the relief sought, absolute precision is not necessary. A broad description of the action is generally sufficient. A general description of the nature of the case has been found sufficient even where multiple theories of liability may arise out of the same fact pattern.

Here, the summons with notice lists five causes of action against Halio (fraud, unjust enrichment, conversion, breach of fiduciary duty, and an accounting), and states that the action seeks monetary damages of $1,500,000. Thus, the summons with notice complies with the statutory requirements, and Halio's motion to dismiss the complaint is denied.

(Internal quotations and citations omitted).

In New York, you can initiate an action not just by filing a summons and complaint (as is done in federal court and most other states), but also by filing a summons and a less detailed notice of your claims and serving and filing the full complaint later. This decision relates to how detailed the notice must be. Contact Schlam Stone & Dolan partner John Lundin at jlundin@schlamstone.com if you or a client have questions regarding an action brought by summons with notice.