The stated purpose of the corporation, owned by two shareholders in a 55%-45% split, was to lease residential and commercial space. The corporation owned one building and the majority holder wanted to sell it as part of a §1031 Exchange. The expected return was expected to be 300% over a…
A recent decision by a New Jersey appellate court has held that one sending a text to someone that is known or should be known to be driving, and in some way encourages a response to that message, may be liable for injuries sustained in a resulting accident. That said,…
The owner of “America’s Dirtiest Restaurant” cannot recover on its claim that the restaurant was defamed. No surprise there. Have a read here.
This case presents an interesting discussion of copyright law, but not only based on a court decision, but on a disgruntled ex-client’s claim against his lawyer. Bernard Gelb and his company hired an attorney, Norman Kaplan, to file a class action lawsuit. After that lawsuit was dismissed, Gelb and Kaplan…
Avis’s car rental agreement provided that the renter would be charged the non-discounted rate for E-Z Pass toll usage. In its provisions dealing with rental charges, Avis made no mention of an additional $2.50 fee, assessed daily, for the renter’s E-Z Pass use. When Avis demanded that the renter pay…
While the misapplication of a law is ordinarily not a reason for a judge to throw out an arbitration award, a Civil Court judge has refused to confirm an arbitration award because it was contrary to established law. In this case, the arbitrator was found to have acted contrary to…
A few months ago, the First Department appellate court invalidated a $1.13 million loan because it found its charges and interest to violate New York’s criminal usury laws. The interesting facts of this case are worthy of discussion. In 2009, ASI, a corporation, needed an immediate cash infusion. Blue Wolf,…
A while back, we wrote about Judge Shack’s dismissal of a foreclosure case, something Judge Schack likes to do, but in a situation where he also ordered the CEO of HSBC Bank to appear for a hearing on possible sanctions. The Second Department reversed Judge Schack, again. The appellate court…
In another example of sophisticated parties ignoring the obvious, the parties to an option contract fought over the implication of standard contract language which provided that the option contract was supported “by good and valid consideration” and thus enforceable. In a somewhat complex case, the parties entered into an agreement…
A group of investors sued the Security and Exchanges Commission for failing to supervise Madoff and investigate complaints it received before the Madoff scandal unfolded. Despite finding that the SEC had dropped the ball, both before and during the investigation, the Second Circuit found the SEC, as an arm of…