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Arbitration: When “May” Means “Shall”
By: Jeffrey M. Haber In today’s article, we discuss how courts interpret arbitration clauses in contracts by focusing on Perle Tech. Inc. v. United Apollo Intl. Inc. , a case recently decided in Supreme Court , Kings County. Despite the use of the word “may” in the arbitration clause, the court held that arbitration was mandatory, not permissive, due to other contract provisions indicating clear intent to arbitrate. The decision underscores the point that under New York la
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Jun 30, 20255 min read
Second Department Dismisses Two Mortgage Foreclosure Actions For Failure to Comply With RPAPL 1306
By: Jonathan H. Freiberger This BLOG has written extensively on a wide variety of issues in the area of mortgage foreclosure. One particular area that has been the subject of numerous articles is RPAPL 1304 . By way of brief background, and as addressed in numerous prior BLOG articles, the Second Department has stated that an “RPAPL 1304 notice is a notice pursuant to the Home Equity Theft Prevention Act ( Real Property Law § 265-a ), the underlying purpose of which is to a
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Jun 27, 20255 min read
Fraud and The East Hampton Dream Home
By: Jeffrey M. Haber In Lopez v. O’Sullivan , 2025 N.Y. Slip Op. 32178(U) (Sup. Ct., Suffolk County) ( here ), the court declined to dismiss fraud claims, among others, finding that plaintiff sufficiently stated a claim for such relief against the defendants. The court determined that plaintiff provided detailed allegations of misrepresentations made by defendants, which induced him to enter into transactions that ultimately deprived him of ownership of his property. In doin
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Jun 25, 20256 min read
Partial Performance Does Not Save Dismissal of Oral Agreement Under The Statute of Frauds
By: Jeffrey M. Haber In Bardy v. Bonnem , 2025 N.Y. Slip Op. 03698 (2d Dept. June 18, 2025) ( here ), plaintiff claimed an oral agreement entitled him to purchase a 25% ownership interest in a drive-thru coffee business in exchange for developing it. The agreement was allegedly based on a November 13, 2016 email offer, orally accepted three days later. Plaintiff allegedly performed substantial work without compensation, relying on the agreement. When the business succeeded,
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Jun 23, 202510 min read
Second Department Finds Factual Issues Regarding the Applicability of RPAPL 1304 and Refuses to Expunge an Erroneously Recorded Satisfaction of Mortgage
By: Jonathan H. Freiberger This BLOG frequently writes about mortgage foreclosure, generally, and RPAPL 1304 , specifically. By way of brief background, and as addressed in numerous prior BLOG articles, the Second Department has stated that an “RPAPL 1304 notice is a notice pursuant to the Home Equity Theft Prevention Act ( Real Property Law § 265-a ), the underlying purpose of which is to afford greater protections to homeowners confronted with foreclosure.” Wells Fargo Ban
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Jun 20, 20255 min read
Fraud and Fraudulent Transfer Counterclaims Against Corporate Individuals Survive Motion to Dismiss, Says The First Department
By: Jeffrey M. Haber In One River Run Acquisition, LLC v. Milde , 2025 N.Y. Slip Op. 03653 (1st Dept. June 17, 2025) ( here ), the Appellate Division, First Department reinstated counterclaims for fraud and fraudulent transfers after they had been dismissed at the motion court level. The case arose from a failed joint venture between One River Run Acquisition, LLC (“ORRA”) and Greenwich Group International LLC (“GGI”) to develop a luxury resort in Colorado. In its countercla
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Jun 18, 20256 min read
In Case of First Impression, Second Department Holds That Arbitration Clause Entered into by Decedent Does Not Compel Arbitration of Wrongful Death Cause of Action by Administrator
By: Jeffrey M. Haber New York “favors and encourages arbitration as a means of conserving the time and resources of the courts and the contracting parties”. Under the Federal Arbitration Act (“FAA”), “‘questions of arbitrability must be addressed with a healthy regard for the federal policy ... any doubts concerning the scope of arbitrable issues should be resolved in favor of arbitration.’” Thus, “where the contract contains an arbitration clause, there is a presumption
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Jun 16, 20259 min read
The Second Department Finds No Waiver of Contract Rights
By: Jonathan H. Freiberger Generally speaking, a party is bound by the terms of a contract to which it is a party. Wu v. Uber Technologies, Inc. , 2024 WL 4874383 at *5 (Ct. Appeals of New York November 25, 2024). Thus, contracts should be enforced according to their terms when they are “clear and unambiguous”. Rocar Realty Northeast, Inc. v. Jefferson Valley Mall Ltd. Partnership , 38 A.D.3d 744, 746 (2 nd Dep’t 2007) (citations omitted). This is so even when a party fails
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Jun 13, 20254 min read
Issues of Fact Preclude Summary Judgment In lieu of Complaint
By: Jeffrey M. Haber This Blog has written about the process known as “summary judgment in lieu of a complaint” on several occasions. The process, codified in CPLR 3213, is a procedure that is unique to New York practice. CPLR 3213 allows a plaintiff to move for summary judgment before the complaint is filed, directly challenging the defendant’s ability to contest the underlying claim. It bypasses traditional pleading and discovery and is available when the action is based
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Jun 11, 20256 min read
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