Justia New York Court of Appeals Opinion Summaries

Plaintiffs brought legal malpractice claims against Jeffrey Daniels, American Guarantee & Liability Insurance Company’s insured. American Guarantee wrongly refused to defend the claims. A default judgment was entered against Daniels, who assigned his rights against American Guarantee to Plaintiffs. Plaintiffs then brought the present action seeking to enforce American Guarantee’s duty to indemnify Daniels for the judgment. Summary judgment was awarded in favor of Plaintiffs. The Appellate Division affirmed. The Court of Appeals affirmed, concluding that American Guarantee’s breach of its duty to defend barred it from relying on policy exclusions as a defense to the present lawsuit. The Court later granted reargument, vacated its prior decision, and reversed the Appellate Division’s order, holding (1) under controlling precedent, American Guarantee was not barred from relying on policy exclusions as a defense; and (2) the applicability of the exclusions American Guarantee relied on presented an issue of fact sufficient to defeat summary judgment.View "K2 Inv. Group, LLC v. Am. Guar. & Liab. Ins. Co." on Justia Law

The Office of the Medicaid Inspector General (OMIG) terminated a physician's participation in the Medicaid program on the basis of a Bureau of Professional Medical Conduct (BPMC) consent order, in which the physician pleaded no contest to charges of professional misconduct and agreed to probation. Supreme Court annulled the OMIG's determination. The Appellate Division affirmed, concluding (1) the agency acted arbitrarily and capriciously in barring the physician from treating Medicaid patients when the BPMC permitted him to continue to practice; and (2) the OMIG was required to conduct an independent investigation before excluding a physician from Medicaid on the basis of a BPMC consent order. The Court of Appeals affirmed but for another reason, holding (1) the OMIG is authorized to remove a physician from Medicaid in reliance solely on a consent order between the physician and the BMPC, regardless of whether BPMC chooses to suspend the physician's license or OMIG conducts an independent investigation; but (2) because OMIG did not explain why the BPMC consent order caused it to exclude the physician from the Medicaid program, the agency's determination was arbitrary and capricious. View "Koch v. Sheehan" on Justia Law

Plaintiff was a 15% partner in defendant Peconic Partners (hedge fund), as well as Chief Compliance Officer. Plaintiff alleged that he was subsequently fired after a dispute with Peconic Partners' CEO and President (Defendant Harnisch). The gist of plaintiff's claim was that the legal and ethical duties of a securities firm and its compliance officer justified recognizing a cause of action for damages when the compliance officer was fired for objecting to misconduct. The court held in Murphy v American Home Prods. Corp that New York common law did not recognize a cause of action for the wrongful discharge of an at-will employee. Therefore, the court declined in this case to make an exception to that rule for the compliance of a hedge fund. View "Sullivan v Harnisch" on Justia Law

This case arose when the superintendent of the school district preferred eight charges of misconduct and/or incompetence against petitioner, then the business manager for the school district. At issue was whether persons who have testified in a Civil Service 75 disciplinary hearing were required to disqualify themselves from subsequently acting upon any of the charges related to that hearing. The court held that, because the testimony of the testifying witnesses, concerning the charges levied pursuant to section 75, rendered them personally involved in the disciplinary process, disqualification was necessary. View "Matter of Baker v Poughkeepsie City School Dist." on Justia Law

In a memorandum opinion, the court addressed whether defense counsel gave implied consent to a mistrial. The court held that there was ample basis on the record for the trial court to conclude that defendants agreed that a mistrial on the undecided charges was the appropriate course of action. The court also held that, because it found no basis to disturb the Appellate Division's factual finding of implied consent, it had no occasion to address the People's alternative argument that there was manifest necessity for the mistrial.

Plaintiff sued a former employee after a number of the former employee's clients left plaintiff's wealth management and investment advisory firm for the firm that the former employee currently works at. The United States Court of Appeals for the Second Circuit certified the following question for the court: "What degree of participation in a new employer's solicitation of a former employer's client by a voluntary seller of that client's good will constitutes improper solicitation?" In answering the certified question, the court continued to apply its precedents in Von Breman v. MacMonnies and Mohawk Maintenance Co. v. Kessler and held that the "implied covenant" barred a seller of "good will" from improperly soliciting his former clients. The court also held that, while a seller may not contact his former clients directly, he may, "in response to inquiries" made on a former client's own initiative, answer factual questions. The court further held that the circumstances where a client exercising due diligence requested further information, a seller may assist his new employer in the "active development... of a plan" to respond to that client's inquires. Should that plan result in meeting with a client, a seller's "largely passive" role at such a meeting did not constitute improper solicitation in violation of the "implied covenant." As such, a seller or his new employer may then accept the trade of a former client.