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

On October 24, 2023, Justice Andrea Masley, of the New York County Commercial Division issued a decision in Abad v. Iaero Group Holdco 2 LLC, Index No. 652510/2022, denying plaintiff’s request for issuance of a default judgment awarding plaintiff rescission as an award on her cause of action for fraud. The Court explained the motion must be denied because plaintiff failed to allege a claim for rescission in her complaint, because rescission cannot be awarded absent notice and the appearance of all parties to the underlying agreement, and because the affidavit relied upon for default was inadequate to support a default judgment. The court explained: Read More

In a Decision and Order, dated October 5, 2023, in ACP Housing Associates, L.P. v. ABJ Milano, LLC, Index No. 156320/2019, Justice Joel M. Cohen granted defendant’s motion for summary judgment dismissing plaintiff’s complaint for reformation. The plaintiff alleged a mutual mistake in a commercial real estate transaction, in that the contract mistakenly conveyed a vacant lot that was not intended to be included in the sale of an adjacent developed property. Plaintiff sought reformation of the contract to exclude the vacant lot from the transaction or, in the alternative, recovery for unjust enrichment. The Court granted defendant’s motion for summary judgment, explaining: Read More

On September 14, 2023, Justice Jennifer G. Schecter of the New York County Commercial Division issued a decision after trial in Han v Kwak, Index No. 654281/2018, 2023 NY Slip Op 33207(U), entering “judgement in favor of defendant Robert Kwak despite evidence clearly and convincingly proving that he defrauded her.” The Court held that the claims for recission or rescissory damages against defendant Kwak could not stand because he was not “her contractual counterparty.” The Court explained: Read More

On December 20, 2023, Justice Andrew Borrok of the New York County Commercial Division issued a case in Ametek, Inc. v. Goldfarb, 2022 N.Y. Misc. LEXIS 7917, dismissing the defendants’ counterclaim for rescission but denying the motion to dismiss the counterclaim for reformation where the defendants did not dispute that there was a meeting of the minds as to the relevant contract provision but disputed whether the provision in the written contract reflected the agreement of the parties, explaining: Read More

On May 20, 2021, the First Department issued a decision in Sky Coverage Inc. v. Alwex Inc., 2021 NY … Read More

On September 28, 2018, Justice Ostrager of the New York County Commercial Division issued a decision… Read More