Business Litigation

In Manhattan NYC, the rate of interest upon the loan or forbearance of any money, goods, or things in action may not exceed 16% per year. N.Y. Gen. Oblig. Law § 5-501(1); N.Y. Banking Law § 14-a(1). That is, in Manhattan, charging interest of more than 16% per year is civil usury. N.Y. Gen. Oblig. Law § 5-511 renders void…Read More

If both parties to a telephone conversation are located in New York State, then one of the parties to that telephone conversation may record the conversation, without the other party’s consent, for use in the recording party’s lawsuit. This is the case because neither the New York Penal Law nor the federal Electronic Communications Privacy Act (the “ECPA”) renders it…Read More

A corporation in Manhattan, NYC should observe certain formalities in its formation and operation to keep its status as a corporation with regard to shielding its shareholders from individual liability. Shielding of A Corporation’s Shareholders From Personal Liability In Manhattan, NYC, shareholders generally may not be held personally liable for causes of action against the corporation. Indeed, the New York…Read More

A corporation in New Jersey must follow certain formalities in its formation and operation to maintain its status as a corporation with respect to protecting its shareholders from personal liability. Protection Of A Corporation's Shareholders From Individual Liability In New Jersey, shareholders generally are not liable for claims against the corporation for amounts greater than their investment in the corporation. …Read More

Periodically, a litigant who is representing himself or herself in court in New York State contacts this author, states that he or she can’t afford to retain an attorney to represent him or her throughout the lawsuit, and asks whether this author, without entering an appearance as counsel of record, will draft or edit certain pleadings for the litigant to…Read More

Last week, in Allen v. V & A Brothers, Inc., No. A-4427-08 (N.J. App. Div. June 23, 2010), New Jersey's Appellate Division held that when a company violates regulations issued under the New Jersey Consumer Fraud Act, N.J.S.A. §§ 56:8-1 - 56:8-184 (the "Consumer Fraud Act" or the "NJCFA"),  "individuals who were principals or employees of" the company and who…Read More

For a company to prevail in a lawsuit in Manhattan, NYC against a customer or client for posting, on an internet site, comments criticizing the company, the company must prove falsity, malice and special damages. In practice, lawsuits by a business against a person for posting, online, negative comments about the business usually fail, either because the defendants’ comments are protected…Read More

This month, in Matter of Cline, 2010 N.Y. Slip Op. 02862 (1st Dep’t April 8, 2010), New York’s Appellate Division, First Department, held that ″where a ′factual issue exists which may be raised by answer′ ” to the petition, the trial court is precluded from summarily granting a member’s petition for judicial dissolution of a limited liability company — that is,…Read More

In order to maintain a specified status quo while the plaintiff’s lawsuit is pending in New York State court, the plaintiff may obtain a preliminary injunction or a temporary restraining order (a “TRO”). An injunction usually includes a direction not to do a particular act. For example, a preliminary injunction may enjoin and restrain the defendant or defendants, while the plaintiff’s lawsuit…Read More

Under N.Y. C.P.L.R. Article 62, a plaintiff creditor may “attach” (that is, seize) “[a]ny debt or property of a defendant debtor who does not reside in Manhattan, NY, or who is secreting his property with intent to defraud his creditors or to frustrate the enforcement of a potential judgment in the creditor’s favor.” The sheriff actually or constructively holds the…Read More