Commercial Division Blog: Current Developments in the Commercial Divisions of the New York State Courts

On October 3, 2024, Justice Joel M. Cohen of the New York County Commercial Division issued a decision in Fortress Credit Corp. v. Cohen, Index No. 651498/2024, rejecting defendant's argument that email exchanges between lender and borrower, which never resulted in a signed agreement, were sufficient to extend borrower's repayment deadline under the loan documents, explaining: Read More

On July 2, 2024, Justice Andrea Masley of the New York County Commercial Division issued a decision in Abrahami v. Feldman, et al., Index No. 652641/2021, holding that a principal whose signature was forged on a guaranty can nonetheless be liable under that guaranty if the principal ratifies the guaranty by retaining the loan proceeds with full knowledge of the material facts, but concluding that there were triable issues of fact precluding entry of summary judgment here because the purported guarantor denied initial knowledge of the underlying loan transaction, explaining: Read More

On November 28, 2023, in Josh Weisberg v. Gary D. Standard, et al., Index No. 651417/2022, Justice Margaret A. Chan granted Plaintiff Josh Weisberg’s motion for reargument of summary judgment seeking to hold a guarantor liable for more than $10 million owed severally by all the other Defendants. The Court had granted Plaintiff’s earlier motion for summary judgment on liability against the Defendant debtors but denied it as to the apportionment of the amount of liability severally among the various Defendants. When considering Plaintiff’s reargument, the Court highlighted that the guarantor, Gary Standard, guaranteed the underlying note “fully and unconditionally” and agreed to language stating, “the Guaranty shall be directly enforceable against [Gary, as guarantor] without first resorting to [the other Defendants] or exhausting any remedies against [those Defendants].” The Court found that this language, and the circumstances of the case, warranted reargument and the granting of summary judgment on liability and damages against the guarantor. The Court explained: Read More

In a decision dated May 2, 2023, in BBM3, LLC v. James Vosotas, Index No. 652015/21, First Department Case Nos. 2022-01935 and 2023-00050, the Appellate Division, First Department affirmed the decision by the Motion Court, Andrew Borrok, J., granting plaintiff’s motion pursuant to CPLR 3212 for summary judgment in lieu of complaint. The First Department explained: Read More

On March 27, 2023, Justice Margaret A. Chan of the New York County Commercial Division issued a decision in HCC Insurance Holdings, Inc. v. Athenium Analytics LLC, 2023 N.Y. Misc. LEXIS 1317. The Court held that an unconditional guaranty on a note was an instrument for the payment of money only within the meaning of CPLR 3213, even where the guarantee, in the preamble and within a provision providing for indemnification, including the word “performance.” The Court explained: Read More