When the New York Prompt Payment Act (“PPA”) was first enacted (effective 1/14/2003), many believed that it would have a major impact on the payment process in the construction industry. That has not been the case. United States District Court Judge Jack Weinstein recognized the limited reach of the PPA…
A recent case from Supreme Court, New York County, brings clarity to a conflict that can arise when a building that shares a party wall is demolished and the site is redeveloped without relying on the party wall. In 145 W. 21st Realty LLC v. First West 21st Street LLC,…
General Business Law § 771 provides a host of requirements for home improvement contracts, chief among them being that such contracts must be in writing and signed by all parties. Additionally, the contract must contain the name, address, telephone number, and license number of the contractor, the dates that the…
Section 1312(a) of the Business Corporation Law, New York’s “door closing” statute, precludes foreign corporations doing business in the state without authority from maintaining an action in the state. The purpose of this statute is to regulate foreign companies actually conducting business in the state. As held in Special Breaks,…
Courts are increasingly being called upon to decide disputes over access to a neighboring property during construction, and their guide is RPAPL § 881, titled “Access to adjoining property to make improvements or repairs.” However, because the statue is vague, a body of cases interpreting RPAPL § 881 has developed…
“Shadow docketing” is the practice of filing a foreclosure action but waiting years to file an RJI, thus delaying court involvement that would otherwise move the case forward. Because of the priority structure in New York foreclosure proceedings (explained below), and because bank lenders recover not just the full outstanding…
A New York Supreme Court judge has reminded parties to be extremely careful in discarding computer system components during the pendency of litigation. In a March 30, 2016 opinion in Ferrara Bros. Building Materials Corp., et ano v. FMC Construction LLC, et ano, Sup. Ct., Queens Co., Index No. 16452/2007,…
Construction contracts typically contain indemnification clauses which shift the financial burdens and risks between and among various parties. Although these clauses are common, their precise meaning and effect can still raise novel legal issues. Recently, Justice Carolyn Demarest of the Commercial Division in the Brooklyn Supreme Court rendered a decision…
New York’s highest court recently issued a decision (after remaining silent for years) concerning sanctions for spoliation of destroyed ESI. See Pegasus Aviation I, Inc. v. Varig Logistica S.A., 2015 WL 8676955, 2015 N.Y. Slip Op. 09187 (Dec. 15, 2015). The trial court originally found that a company’s corporate parent…
Can a cooperative apartment owner claim to be “ready, willing and able” to close where the board of directors of the cooperative has threatened to try to reclaim exclusive rights to penthouse terrace access that the buyer bargained for? According to the First Department, the answer may well be “No”…