OCA Adopts New Rule to Trim Adjudication Process

The Office of Court Administration has adopted a new rule that will give parties drafting a contract the option to accelerate the disposition of any future-arising disputes by removing the usual brakes to litigation in the Commercial Division.

 

Determining Third-Party Beneficiary Status

In their Commercial Division Update for the New York Law Journal, George Bundy Smith, an arbitrator and mediator with JAMS, and Thomas J. Hall, a partner at Chadbourne & Parke, write: Recent cases demonstrate that the Appellate Departments have developed somewhat antithetical, yet equally supported, views on how circumstances surrounding a contract's formation can affect a party's status as an intended beneficiary of a contract.

Decisions
  • Gentry T. Beach v. Touradji Capital Management – Schweitzer grants defendant hedge fund leave to amend counterclaims in $50M suit over allegedly unpaid bonuses since discovery uncovered new facts and plaintiff failed to show prejudice through amendment (Justice Melvin L. Schweitzer)
    April 22, 05:45 PM EDT
  • The Diversified Group v. Marcum & Kliegman – Bransten dismisses complaint containing remaining contribution claim based in part on prior $4M settlement with investors which court held constitutes valid release (Justice Eileen Bransten)
    April 22, 05:30 PM EDT
  • SS Marks v. Morrison Cohen – Sherwood dismisses legal malpractice action against Morrison Cohen, holding that documentary evidence refutes plaintiff's assertion that he was not advised of subordination clause or unsigned guaranties prior to closing of real estate transaction (Justice O. Peter Sherwood)
    April 21, 04:25 PM EDT
  • Sealink Funding v. Morgan Stanley – Bransten dismisses second amended complaint arising from $507M purchase of RMBS, holding that Sealink does not have standing to sue since, under English law, chain of transfers did not assign causes of action sounding in tort (Justice Eileen Bransten)
    April 21, 04:21 PM EDT
Case Motions
  • Royal Park Investments v. Citigroup – RPI opposes Citigroup's motion to dismiss, asserting that $403M RMBS purchase was made in reliance on documents that concealed material information and that Citigroup knew about high defect rates of underlying mortgage loans (Robbins Geller Rudman & Dowd) (Justice Charles E. Ramos)
    April 23, 07:19 AM EDT
  • Wibbert Investment v. New Silk Route Pe Asia Fund – Plaintiff investor asserts that agreement prohibits capital calls for new investments and moves for TRO and PI against fund whose investment committee allegedly included Raj Rajaratnam and Rajat Gupta (Justice Charles Edward Ramos)
    April 22, 05:48 PM EDT
  • Royal Park Investments SA/NV v. The Royal Bank of Scotland – Defendants further move to dismiss complaint over $1.6B purchase of RMBS, claiming failure to distinguish between corporate defendants and failure to plead scienter, reliance or material misrepresentations (Skadden, Arps, Slate, Meagher & Flom) (Justice Charles E. Ramos)
    April 22, 05:32 PM EDT
  • American Stevedoring v. Red Hook Container Terminal – Plaintiff opposes Red Hook's motion for summary judgment to dismiss action for recovery of $10M of stolen equipment in wake of Superstorm Sandy, alleging disputed issues of material fact (Hiller) (Justice O. Peter Sherwood)
    April 22, 05:30 PM EDT