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The Second Department Explains the Difference Between a Brokerage Agreements Granting an “Exclusive Right to Sell” and an “Exclusive Agency”
By: Jonathan H. Freiberger Folks enter into brokerage agreements all the time. The most familiar situation involving brokerage agreements are those related to the sale of real property. Litigation over brokerage agreements often involves the payment of commissions. In general, “to prevail on a cause of action to recover a commission, the broker must establish (1) that it is duly licensed, (2) that it had contract, express or implied, with the party to be charged with paying t
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Jul 25, 20255 min read
Manifest Disregard of The Law and Class Arbitrations
By: Jeffrey M. Haber In Light & Wonder, Inc. v. Mohawk Gaming Enters. LLC , 2025 N.Y. Slip Op. 51070(U) (Sup. Ct., N.Y. County July 2, 2025 ( here ), the Supreme Court, New York County, Commercial Division, upheld an arbitrator’s class certification award. The decision centered on whether the arbitrator exceeded his authority or manifestly disregarded the law by certifying a class without individually analyzing the arbitration clauses of absent class members. Light & Wonder
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Jul 23, 202511 min read
Complaint Dismissed On Forum Non Conveniens Grounds Because New York Did Not Have A Substantial Nexus To The Alleged Fraud
By: Jeffrey M. Haber Forum non conveniens is a common law doctrine in which a court may dismiss an action where another forum would be better suited to adjudicate the matter. In New York, the doctrine is codified in CPLR 327(a). Under this section, a court may “stay or dismiss action in whole or in part on any conditions that may be just” if it finds that “in the interest of substantial justice the action should be heard in another forum.” The doctrine reflects the basic p
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Jul 21, 202511 min read
Execution of Two Stipulations Proves Fatal to Defendant’s Motion for Relief Under CPLR 317
By: Jonathan H. Freiberger Appearing in an action may give rise to a waiver of a litigant’s right to challenge the court’s jurisdiction over the litigant. As explained in prior blog articles, it is axiomatic that a “plaintiff appears merely by bringing it.” Deutsche Bank Nat. Trust Co. v. Hall , 185 A.D.3d 1006, 1007 (2 nd Dep’t 2020) (citation and internal quotation marks omitted). Once served with process, a defendant must appear in an action to avoid a default. CPLR 320
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Jul 18, 20254 min read
Enforcement News: SEC Files Charges Against Georgia-Based Lender For Operating $140 Million Ponzi Scheme
By: Jeffrey M. Haber A Ponzi scheme is an investment scam that induces people to invest money in a business or investment vehicle with promises of high returns and minimal risk. Rather than earning profits through actual investments or legitimate business operations, the scheme functions by paying early investors with money contributed by new or repeat participants. The name of the fraud comes from Charles Ponzi, who infamously ran such a scheme in the early 1900s. A Ponzi
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Jul 14, 20257 min read
Second Department Holds that Relief Under CPLR 3213 was Unavailable for Claim Under Guaranty of Lease
By: Jonathan H. Freiberger Today’s article relates to summary judgment in lieu of complaint pursuant to CPLR 3213 , which provides, in relevant part: When an action is based upon an instrument for the payment of money only or upon any judgment, the plaintiff may serve with the summons a notice of motion for summary judgment and the supporting papers in lieu of a complaint. The summons served with such motion papers shall require the defendant to submit answering papers on th
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Jul 11, 20254 min read
Fraudulent Inducement and The Independent Contractor Agreement
By: Jeffrey M. Haber In Wilburger v. Ava Labs, Inc. , 2025 N.Y. Slip Op. 51072(U) (Sup. Ct., N.Y. County July 3, 2025) ( here ), plaintiff sued defendant for breach of contract, unjust enrichment, and fraudulent inducement related to unpaid compensation for services rendered under an Independent Contractor Agreement. Plaintiff alleged that he worked over 2,300 hours between 2019 and 2023, including tasks beyond the scope of the agreement, and was promised payment in AVAX cry
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Jul 9, 20259 min read
The Failure to Exercise Reasonable Diligence Dooms Application of 2-Year Discovery Rule
By: Jeffrey M. Haber Under New York law, an action based upon fraud must be commenced within six years of the date the cause of action accrued, or within two years of the time the plaintiff discovered or could have discovered the fraud with reasonable diligence, whichever is greater. The cause of action accrues when “every element of the claim, including injury, can truthfully be alleged”, “even though the injured party may be ignorant of the existence of the wrong or inj
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Jul 5, 20258 min read
Enforcement News: N.H. Real Estate Developer and Coach Charged with Multimillion Dollar Real Estate Investment Fraud
By: Jeffrey M. Haber On June 26, 2025, the Securities and Exchange Commission (SEC”) announced ( here ) that it charged a Manchester, New Hampshire resident, Robynne Alexander, a real estate investment coach and real estate investment coach, with defrauding investors through real estate investment schemes resulting in losses of at least $3 million. According to the complaint filed by the SEC ( here ), from 2018 through 2024, defendant solicited investors to buy securities i
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Jul 2, 20252 min read
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