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

On August 2, 2024, Justice Anar Rathod Patel of the New York County Commercial Division issued a decision in Acquiom Agencies Services LLC v. Fox Capital LLC, 2024 WL 3643594, granting a motion for summary judgment in lieu of complaint on a guaranty and rejecting the guarantors' argument that the guaranty was not an instrument for the payment of money only because it included the word "performance," explaining: Read More

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

On September 15, 2023, Justice Joel M. Cohen of the New York County Commercial Division issued a decision in Credit Europe Bank (Dubai) Ltd. v Shetty, Index No. 651931/2023, 2023 NY Slip Op 33204(U) denying the plaintiff’s motion for summary judgment in lieu of complaint based on improper service of process. The Court held that, despite an affidavit from an attorney representing the defendant in another action that he was authorized to accept service on behalf of that defendant in this action, plaintiff had failed to show proper service of process because that attorney was not attorney-of record in the underlying action, and because there was no evidence that the defendant had authorized that attorney to accept process on its behalf. 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