Justia New York Court of Appeals Opinion Summaries

This case arose from a contract between the school district and DJH to perform heating, ventilation, and air condition work. The contract required DJH to obtain a performance bond which DJH secured from Nova, a compensated surety. At issue was whether Nova was discharged from it surety obligation to the school district on the bases that the school district allegedly violated New York's Lien Law 70[1] by improperly diverting construction contract payments constituting trust fund assets to a non-beneficiary and breached the terms of the parties' performance bond. The court held that under the facts, Nova had not demonstrated that discharge of its surety obligation was warranted. The court also considered whether the school district was entitled to attorneys' fees expended in the prosecution of the litigation and concluded that the request for attorneys' fees was properly denied. View "Mount Vernon City School Dist. v Nova Cas. Co." on Justia Law

Plaintiff, an auto parts distributor with operations in multiple states, secured general liability, automotive liability, and workers' compensation policies from defendants for annual coverage periods between September 1992 and September 2003. At issue was whether the six-year statue of limitations applicable to the insurers' breach of contract counterclaims began to run when they possessed the legal right to demand payment from the insured or years later after they issued invoices. Under the terms of the insurance contracts in this case, the court concluded that the counterclaims accrued when the insurers had the right to demand payment. View "Hahn Automotive Warehouse, Inc. v American Zurich Ins. Co." on Justia Law

Plaintiff commenced a putative class action against Bloomberg alleging a violation of General Obligations Law 5-901 and 5-903; breach of contract; unjust enrichment; negligent misrepresentation; violation of General Business Law 349; and sought declaratory and injunctive relief. The Appellate Division subsequently granted Bloomberg's motion to dismiss plaintiff's complaint in its entirety. The court affirmed, holding that, even affording plaintiff every favorable inference, when reviewing the pleadings and factual allegations of his complaint, plaintiff's failure to identify a cognizable injury proved fatal to his action against Bloomberg. View "Ovitz v Bloomberg L.P." on Justia Law

Plaintiff sued his former employer alleging causes of action for failure to pay wages in violation of Labor Law 190-198 and breach of contract. The employer subsequently appealed the Appellate Division's order, arguing that there was insufficient evidence to support the jury's verdict because statements in the employment application and employee handbook negated plaintiff's alleged expectation of, or entitlement to, a guarantee or non-discretionary bonus and that the oral agreements respecting the bonus, if, in fact, entered into by the parties, were unenforceable. The court concluded that plaintiff's bonus was "expressly link[ed]" to his "labor or services personally rendered." Further, plaintiff's bonus had been earned and was vested before he left his job; its payment was guaranteed and non-discretionary as a term and condition of his employment. Since plaintiff's bonus therefore constituted "wages" within the meaning of Labor Law 190, the employer's neglect to pay him the bonus violated Labor Law 193, and entitled plaintiff to an award of attorney's fees under Labor Law 198(a-1). The court considered the employer's remaining arguments and found them to be without merit. Accordingly, the order of the Appellate Division was affirmed. View "Ryan v Kellogg Partners Inst. Servs." on Justia Law

This action arose from practices employed in connection with the handling of claims made under retrocessional reinsurance treaties providing what was known as "non-life" coverage. At issue was the sufficiency and extra-territorial reach of plaintiff's claim under New York State's antitrust statute (Donnelly Act), General Business Law 340 et seq. Plaintiff, a New York branch of a German reinsurance corporation, sued defendants, English based entities engaged in the business of providing retrocessionary reinsurance. The Appellate Division found that the complaint adequately pled a worldwide market. And, while acknowledging that the crucial allegations contained in paragraph 36 of the amended pleading did not separately allege market power, the allegations read together and liberally construed were adequate to that purpose. The Appellate Division granted plaintiff leave to appeal, certifying to the court the question of whether its order reversing the order of Supreme Court was properly made. The court answered in the negative and reversed. Even if the pleading deficiency at issue could be cured and the court perceived no reason to suppose that the formidable hurdle of alleging market power could be surmounted by plaintiff there would remain as an immovable obstacle to the action's maintenance, the circumstance that the Donnelly Act could not be understood to extend to the foreign conspiracy plaintiff purported to described. View "Global Reins. Corp.-U.S. Branch v Equitas Ltd." on Justia Law

Abacus commenced this action against ADT and Diebold to recover damages under tort and contract theories for losses incurred during a burglary of the bank. The court affirmed the dismissal of the complaint with one exception. The court concluded that Abacus had adequately stated a cause of action for breach of contract against ADT for its alleged losses other than losses allegedly sustained by its safe deposit box customers. View "Abacus Fed. Sav. Bank v ADT Sec. Servs., Inc." on Justia Law

Insurer commenced the instant suit against insureds, alleging eight causes of action and requesting a declaration that the insurer's policy provided no coverage or duty to indemnify any amount paid or payable by insured and the plan in an underlying class action suit. At issue was whether the disputed language in an insurance policy extended coverage to alleged violations of the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. 1001 et seq., by insureds. The court reaffirmed fundamental principles of insurance contract interpretation and held that the plain language of the policy did not cover such acts and, therefore, the Appellate Division correctly held that insurer was entitled to summary judgment and a declaration that was not required to indemnify insured in the manner requested. View "Federal Ins. Co. v Int'l Bus. Machs. Corp." on Justia Law

Plaintiff, a nontenured teacher, commenced this action against defendants asserting causes of action for prima facie tort and tortious interference with prospective contractual relations. The complaint alleged, inter alia, that plaintiff was not granted tenure because of the continuous pressure and influence exerted upon school officials by defendants. At issue was whether defendants' course of conduct in instigating complaints to school authorities against plaintiff was entitled to an absolute privilege under Brandt v. Winchell that would warrant dismissal of plaintiff's cause of actions with prospective contractual rights. Assuming the truth of the allegations in the complaint, the court must at this early stage of the litigation, conclude that defendants' conduct was not immunized by Brandt. View "Posner v Lewis" on Justia Law

This case arose when defendant agreed in three separate contracts to sell three properties to plaintiffs. At issue was whether a buyer in a damages suit like this one must show that it was ready, willing, and able to close the transaction i.e., that but for the seller's repudiation, the transaction could and would have closed. The court held that in a case alleging that a seller has repudiated a contract to sell real property, the buyers must prove that they were ready, willing, and able to close the transaction. Here, the buyers did submit evidence of their financial condition, but that evidence was not conclusive of the issue. Therefore, whether the buyers were ready, willing, and able to close presented an issue of fact and the buyers' motion for summary judgment should have been denied. The court also held that the courts below erred in deciding as a matter of law that the seller repudiated the contracts by transferring the properties in question. The court held, however, that the courts below were correct in denying the seller's cross-motion for summary judgment. View "Pesa v Yoma Dev. Group, Inc." on Justia Law

Plaintiff sued defendant asserting causes of action for breach of fiduciary duty, gross negligence, and breach of contract where the gravamen of the complaint was that defendant mismanaged the portfolio of an entity whose obligations plaintiff guaranteed. At issue was whether the Martin Act, General Business Law art 23-A, preempted plaintiff's common-law causes of action for breach of fiduciary duty and gross negligence. The court agreed with plaintiff that the Martin Act did not preclude a private litigant from bringing a nonfraud common-law cause of action where the Martin Act did not expressly mention or otherwise contemplate the elimination of common-law claims. View "Assured Guar. (UK) Ltd. v J.P. Morgan Inv. Mgt. Inc." on Justia Law