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June 10, 2024
First Department Holds That Note And Guaranty Stating They Are “Instrument[s] For The Payment Of Money Only” Allows Use Of Summary Judgment In Lieu Of Complaint Without Further Inquiry
On March 5, 2024, the Appellate Division, First Department, unanimously reversed a lower court decision denying summary judgment in lieu of complaint on claims to recover on a note and guaranty. In Marjan International Corporation v. Lillian August Designs Inc., Case No. 2021-04798, the Court relied on language from the note and guaranty stating that the defendant “acknowledges and agrees that this Note is an instrument for the payment of money only within the meaning of the CPLR 3213 and expressly waives any right and hereby agrees not to assert that this Note is not such an instrument.” This language was dispositive, the Court said, and obviated the need to further consider whether the note and guarantee fell within the expedited procedure of CPLR 3213. The Court explained: Read More
April 10, 2023
Unconditional Guaranty is Instrument for Payment of Money Only Within the Meaning of CPLR 3213 Despite Indemnification Provision
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
