New York Commercial Division Round-Up Blog

News & Updates on Cases Decided in the Commercial Division of the New York State Supreme Court

Latest from New York Commercial Division Round-Up Blog - Page 2

Pursuant to New York Civil Practice Law and Rules § 306-b, a plaintiff is required to serve a summons and complaint within 120 days of commencing an action. Although a court may grant an extension of this deadline for good cause shown or in the interests of justice, Judge Richard M. Platkin recently found that neither justified an extension of the plaintiff’s time to serve its summons and complaint in Plank, LLC v. Dutch Village, LLC, et al., 62 Misc. 3d 1220(A) (N.Y. Sup. Ct. Feb. 7, 2019). In that case, the Court rejected any argument that the plaintiff’s failure
Continue Reading Commercial Division Denies Plaintiff’s Request for Additional Time to Serve Complaint After Plaintiff LLC Failed to Appear Through Counsel

During her annual State of Our Judiciary speech on February 26, 2019, Chief Judge Janet DiFiore announced that the Commercial Division would be expanding to Bronx County. As stated by Chief Judge DiFiore, the expansion is “in recognition of the economic resurgence taking place in the Bronx” and “the number of commercial cases filed in Bronx Supreme Civil.” Although the change was effective on April 1, 2019, the Commercial Division has yet to announce which justices will be assigned to these new Commercial Division openings or amend the Commercial Division Rules to provide for, among other things, a jurisdictional threshold
Continue Reading Chief Judge DiFiore Announces Expansion of Commercial Division to Bronx County

In Kyowa Seni, Co., Ltd. v. ANA Aircraft Technics, Co., Ltd., Docket No. 650589/2017, 2018 WL 3321410 (N.Y. Sup. Ct. July 5, 2018), Justice Saliann Scarpulla of the New York County Commercial Division joined in a long line of New York federal cases that have vitiated the registration theory of jurisdiction.
Continue Reading Seeking to Allege General Jurisdiction in New York? Corporate Registration is Not Enough

In an effort to streamline litigation in the Commercial Division, the Commercial Division Advisory Council has continued with its revisions to the Commercial Division Rules by recently implementing one new rule encouraging early adjudication on threshold issues, and revising another rule to approve the use of technology-assisted review in discovery.
Continue Reading Commercial Division Rule Revisions Continue to Promote Efficiency in Complex Cases

Four of the proposed amendments to the Commercial Division Rules, which were discussed in an earlier blog post while the rules were under consideration by the Office of Administration, were adopted over the summer and have now gone into effect in the Commercial Division.
Continue Reading Commercial Division Rolls Out Four New Rules Covering Expert Disclosures, Temporary Restraining Order Requirements, Forum Selection Clauses and Trial Length

On May 22, 2017, Governor Andrew M. Cuomo announced that Justices Anil C. Singh and Jeffrey K. Oing had been appointed to fill vacancies on the bench of the Appellate Division, First Department. June 12, 2017 was the last day on the Commercial Division bench for both Justices. Since their departure for the First Department, Justices Singh and Oing have been missed on the Commercial Division bench, as the Court has worked to reassign their substantial caseloads. Acting Administrative Judge George J. Silver, who has temporarily stepped into the role left by prior Administrative Judge Peter H. Moulton (who was
Continue Reading Changing of the Guard in the New York County Commercial Division

In Gordon v. Verizon Communications, Inc., No. 653084/13, 2017 WL 442871 (N.Y. App. Div. Feb. 2, 2017), the Appellate Division of the Supreme Court of the State of New York, First Judicial Department (the “First Department”), reversed an order denying plaintiffs’ motion for final approval of a proposed non-monetary settlement in a shareholder class action litigation related to Verizon Communication Inc.’s (“Verizon”) acquisition of Vodafone Group PLC’s (“Vodafone”) stake in Verizon Wireless (“VZW”).  With its decision, the New York Appellate Division breathed new life into beleaguered disclosure-only class action settlements, and modernized what it believed had become an outdated
Continue Reading New York Appellate Division Revives Non-Monetary Class Action Settlement in M&A Class Action with Revised Standard of Review

The New York Commercial Division is poised to continue its rules revamp, with six new rules proposals announced since October.  While these proposals would not alter practice before the Commercial Division in the same manner that the 2014 and 2015 updates did, they do raise important practice considerations for parties and counsel who are currently, or expect to be, engaged in practice before the Commercial Division.

The Office of Court Administration is currently accepting public comments on most of the proposed rules described below, which will likely go into effect later this year or early next year.
Continue Reading New Year, New Rules: More Changes to the Commercial Division Rules Coming in 2017

In Matter of CDR Créances S.A.S. v First Hotels & Resorts Invs., Inc., 2016 Slip Op. 04888 (1st Dep’t June 21, 2016), the Appellate Division reversed a December 11, 2014 Order by New York County Commercial Division Justice Lawrence K. Marks, which denied respondent First Hotels & Resorts Investments, Inc.’s (“First Hotels’”) motion to dismiss the action for lack of personal jurisdiction.  The action related to an $82 million loan made in 1991 by a predecessor in interest of petitioner CDR Créances S.A.S. (“CDR”) to Euro-American Lodging Corp. (“Euro-American”).  The loan was made to enable Euro-American to acquire Manhattan
Continue Reading Be Sure to Sue Before Your Defendant Moves: Appellate Division Finds No Jurisdiction Over Defendant Company After Sale of Its New York Assets

The Commercial Division Advisory Council continued its revamp of the Commercial Division Rules on October 14, 2015, when it implemented amendments to 22 NYCRR § 202.70(b) and (c).  As we discussed in this blog when the amendments were proposed in April, the amendment to 22 NYCRR § 202.70(b) subjects actions to compel or stay domestic arbitration hearings and actions to affirm or disaffirm domestic arbitration awards to the same eligibility criteria as other matters.  Such actions must involve equitable and/or declaratory relief, or meet the monetary threshold of $500,000 in New York County, $200,000 in Nassau County, $150,000 in
Continue Reading Commercial Division Rules Revamp Encourages International Arbitration Matters In The New York County Commercial Division

In AP Services, LLP v. Lobell et. al, No. 651613/2012, 2015 NY Slip Op 31115(U) (N.Y. Sup. Ct. June 19, 2015) (argued Feb. 21, 2014), Justice Friedman, applying Delaware Law, denied a motion to dismiss plaintiff AP Services, LLP’s first cause of action alleging breach of fiduciary duty against the defendants, former directors of Paramount Acquisition Corp., while granting dismissal of the second cause of action against them for allegedly aiding and abetting the breach of fiduciary duty.
Continue Reading Justice Friedman Allows Breach of Fiduciary Duty Claim to Proceed Against Corporate Directors Under Delaware Law

In Justinian Capital SPC v. WestLB AG, etc. et al., 2015 N.Y. Slip Op. 04381 (1st Dep’t May 21, 2015), the Appellate Division affirmed the February 25, 2014 decision of the New York County Supreme Court, Commercial Division (Kornreich, J.), 43 Misc. 3d 598, holding that actual payment for the transfer of rights to a legal claim is required in order to qualify for the champerty doctrine’s safe harbor provision.
Continue Reading Pay to Play: Appellate Division Upholds Ruling that Payment is Required to Qualify for Champerty Safe Harbor Provision

The Commercial Division Rules are once again the subject of several proposed amendments, as detailed below.  While these proposals are not as far-reaching as some of the rule changes enacted in 2014, they nonetheless raise important practice considerations for parties and their counsel engaged in practice before the Commercial Division.  Expect to see these new rules take effect later this year.
Continue Reading Commercial Division Practice Continues to Shift Towards Federal Standards with Four Proposed Rule Changes

On Tuesday, April 7, 2015, Justice Anil C. Singh of the New York Supreme Court was appointed to the New York County Commercial Division.  Justice Singh succeeds Justice Melvin Schweitzer, who retired last year.  According to his judicial biography, Justice Singh is a 1986 graduate of Antioch School of Law in Washington, D.C.
Continue Reading Justice Anil C. Singh Appointed to New York County Commercial Division

The past year has been a busy time for anyone keeping up with the Rules for the Commercial Division of the New York State Court System.  The Commercial Division Advisory Council, led by Justice Eileen Bransten, has been pushing through various reformative measures, most of which were first recommended in the June 2012 Report and Recommendations to the Chief Judge of the State of New York of the Chief Judge’s Task Force on Commercial Litigation in the 21st Century.  Below is a brief summary of the new rules, which are already in effect or take effect on April 1, 2015.
Continue Reading Keeping Up With The Commercial Division(s)

Effective September 2, 2014, the New York Supreme Court implemented a major change to the Commercial Division rules governing privilege logs submitted during the course of litigation. (See New York Supreme Court, Administrative Order of the Chief Administrative Judge of the Courts: Rule 11-b (July 8, 2014)).  Previously litigants were required to produce a traditional “document-by-document” privilege log that included a separate entry for each document being withheld, pedigree information for that document, and the specific privileges insulating the document from production.  Under Rule 11-b of the Rules of Practice for the Commercial Division, Litigants can instead produce “categorical” privilege
Continue Reading New Commercial Division Rule Seeks to Streamline Privilege Log Requirements for Litigants