Business Law

By:  Jeffrey M. Haber In Alphasense, Inc. v. Financial Tech. Partners LP , 2026 N.Y. Slip Op. 00185 (1st Dept. Jan. 15, 2026), the Appellate Division, First Department, considered whether Plaintiffs validly terminated an advisory agreement with Defendants under a “Key Man” provision. Plaintiffs alleged that Defendants’ managing partner, critical to the engagement, gradually stopped participating in essential advisory work, including investor meetings, introductions, and fundr

By: Jeffrey M. Haber In New York, foreign business entities – e.g. , corporations, limited liability companies, and partnerships authorized to do business in another jurisdiction or country – are required to register to do business with the Secretary of State. The failure to receive such authority deprives the foreign entity of the ability to affirmatively access the courts of New York and subjects any action commenced by the foreign entity to dismissal. The purpose of the r

By:  Jeffrey M. Haber In today’s article, we examine Hofman v. Braun , 2025 N.Y. Slip Op. 34102(U) (Sup. Ct., N.Y. County Oct. 24, 2025) ( here ), a case addressing the statute of limitations for a breach of fiduciary duty claim and the continuous wrong doctrine. In Hofman , plaintiffs alleged that defendant, Seymour Braun, their attorney, initially represented them in forming limited liability companies and negotiating a loan, then engaged in actions adverse to their intere

By: Jeffrey M. Haber Today, we examine familiar principles of contract interpretation, as well as the requirements for judicial dissolution of a partnership.  The Rules of Contract Interpretation It is well-settled in New York that the “‘fundamental, neutral precept of contract interpretation is that agreements are construed in accord with the parties’ intent<,> ’ and ‘ he best evidence of what parties to a written agreement intend is what they say in their writing.’” “‘The

By:  Jeffrey M. Haber In New York, when interpreting a contract, the words of the writing must be accorded their fair and reasonable meaning, aiming for a practical interpretation that realizes the reasonable expectations of the parties. The court is required to enforce a written agreement according to the plain meaning of its terms when it is complete, clear, and unambiguous on its face.  Although the parties may offer conflicting interpretations of their contract, that do

By:  Jeffrey M. Haber Under New York’s Limited Liability Company Law (“LLCL”) § 702 , a court “may decree dissolution of a limited liability company whenever it is not reasonably practicable to carry on the business in conformity with the articles of organization or operating agreement.” The claim must be brought “ n application by or for a member” of the company. In Matter of Bodenchak v. 5178 Holdings LLC , 2025 N.Y. Slip Op. 05875 (1st Dept. Oct. 23, 2025) ( here ), the Ap

By:  Jeffrey M. Haber Today, we consider Tahari v. 860 Fifth Ave. Corp. , 2025 N.Y. Slip Op. 05584 (1st Dept. Oct. 9, 2025) ( here ), an apparent case of first impression in the Appellate Division, First Department, involving the suability of a board of directors under New York law.    In New York, “the business of a corporation managed under the direction of its board of directors…” Notwithstanding, a corporation’s board of directors is neither empowered to commence an act

By:  Jeffrey M. Haber In Macklowe Inv. Props. LLC v. MIP 57th Dev. Acquisition LLC , 2025 N.Y. Slip Op. 05192 (1st Dept. Sept. 30, 2025) ( here ), the plaintiff, a real estate brokerage, sued pursuant to a letter agreement for a leasing commission after securing a tenant for defendants’ property. The letter agreement required satisfaction of a condition precedent before payment of the commission: execution of a leasing commission agreement. Plaintiff never fulfilled this cond

By:  Jeffrey M. Haber In BLDG 44 Developers LLC v. Pace Companies N.Y., LLC , 2025 N.Y. Slip Op 32881(U) (Sup. Ct., N.Y. County July 25, 2025) ( here ), BLDG 44 Developers LLC sued Pace Companies New York, LLC for breach of contract, seeking approximately $16 million in consequential damages related to delays in a construction project on E. 44th Street, New York, N.Y. BLDG, the project owner, was a third-party beneficiary to a subcontract between Pace and Noble Construction G

By:  Jeffrey M. Haber In Finkelstein v. U.S. Bank, N.A. , 2025 N.Y. Slip Op 32882(U) (Sup. Ct., July 30, 2025) ( here ), plaintiff alleged that he was underpaid on his investment in a residential mortgage-backed securities (“RMBS”) trust due to the improper exercise of termination rights by the trust’s servicers. Plaintiff claimed they excluded deferred principal and interest balances from the termination price, repackaged the remaining loans, and profited from new trusts. Th

By:  Jeffrey M. Haber In Skyview Capital, LLC v. Conduent Business Servs., LLC , 2025 N.Y. Slip Op. 03291 (1st Dept. June 03, 2025) ( here ), the Appellate Division, First Department addressed various issues concerning fraud causes of action with which readers of this Blog are familiar: the duplication doctrine, justifiable reliance and disclaimer clauses. As discussed below, Skyview Capital arose from defendant’s sale to plaintiff of certain assets, namely, customer care ca

By: Jeffrey M. Haber In Libman v. Hershey Co. , 2025 N.Y. Slip Op. 31769(U), (Sup. Ct., N.Y. County May 5, 2025) ( here ), the motion court was asked to consider whether a front-of-the-package label on the Twizzlers candy wrapper violated General Business Law (“GBL”) §§ 349 and 350. Front-of-package labels are labels that manufacturers put on the front of packaged foods to give consumers basic nutrition information in a way that is easy to understand and allows them to compar

By: Jeffrey M. Haber It is well settled that the parties to an agreement may freely select any forum to resolve any disputes regarding the interpretation or performance of the agreement. A forum selection clause is prima facie valid “unless-it is shown by the challenging party to be unreasonable, unjust, in contravention of public policy, invalid due to fraud or overreaching, or it is shown that a trial in the selected forum would be so gravely difficult that the challenging

By: Jeffrey M. Haber On April 16, 2025, the Securities and Exchange Commission (“SEC” or Commission”) announced ( here ) that its Office of Investor Education and Advocacy (“OIEA”) had unveiled an anti-fraud public service campaign to warn investors about the impact relationship investment scams can have on their financial future. As explained in the release, “ elationship investment scams typically involve a ‘long con’ in which scammers reach out online or through text messa

By: Jeffrey M. Haber An investment company is a company that issues securities and primarily invests in securities. Among the securities laws applicable to investment companies, is the Investment Company Act (“ICA”). Congress enacted the ICA to provide for the registration and regulation of investment companies to protect investors from purchasing securities without the benefit of certain information about the securities, the investment company, and its management. An investm

By: Jeffrey M. Haber It is well-settled that a plaintiff asserting a derivative claim seeks to recover for injury to the business entity, regardless of whether the entity is a corporation, limited liability company, or partnership. A plaintiff asserting a direct claim seeks redress for injury to himself/herself individually. “The distinction between derivative and direct claims is grounded upon the principle that does not have an individual cause of action that derives from

By: Jeffrey M. Haber An operating agreement is the primary document that establishes the rights, powers, duties, liabilities, and obligations of the members of a limited liability company (“LLC”) between themselves and with respect to the company. The purpose of the document is to govern the internal operations of an LLC in a way that addresses the needs of the company’s owners (also known as “members”). Notwithstanding its importance, not every state requires an LLC to have

By: Jeffrey M. Haber It is not uncommon for courts to apply the law of another jurisdiction to resolve a dispute before it. In commercial matters, choice of law contract provisions and doctrines, such as the internal affairs doctrine, typically identify the law that should apply to the parties’ dispute. Palella v. TMO VI LLC , 2025 N.Y. Slip Op. 30373(U) (Sup. Ct., N.Y. County Jan. 27, 2025) ( here ), is a recent example of a New York court applying the law of another jurisdi

By: Jeffrey M. Haber Under New York law, written agreements are construed in accordance with the parties’ intent. “The best evidence of what parties to a written agreement intend is what they say in their writing.” As such, “a written agreement that is complete, clear and unambiguous on its face must be enforced according to the plain meaning of its terms.” “Courts may not ‘by construction add or excise terms, nor distort the meaning of those used and thereby make a new con

By:  Jeffrey M. Haber In today’s article, we revisit some familiar principles concerning claims of fraudulent inducement. We will also examine the impact of a contractual exculpatory clause on the viability of a fraud claim, as well as the impact of contractual provision that negates the basis for a fraud claim. Our examination of these issues and principles is centered on MREF REIT Lender 2 LLC v. FPG Maiden Holdings LLC , 2024 N.Y. Slip Op. 06161 (1st Dept. Dec. 10, 2024) (