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Don’t Unwittingly Waive Goodbye to the Defense of Lack of Personal Jurisdiction
By: Jonathan H. Freiberger 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(a) , which sets forth, inter alia, the way a defendant can appear in an action, provides that “ he defendant appears by serving an answer or a notice of appearanc
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Feb 14, 20254 min read
The Stress of Bar Association Activities Sufficient to Support the Defense of Law Office Failure
By: Jeffrey M. Haber Now and then a lawyer fails to meet a deadline or otherwise acts untimely. Several “saving” provisions in the Civil Practice Law and Rules (“CPLR”) are available to assist a lawyer when deadlines are missed. These include: CPLR 2005, CPLR 3012(d), and CPLR 5015(a). The key to applying one or more of these provisions is the reasonableness of the excuse for the delay or default. In Fox v. Gross , 219 A.D.3d 584, 585-586 (2d Dept. 2023), the Appellate Divi
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Feb 12, 20254 min read
Judicial Dissolution Denied Due to Waiver of Such Relief in Governing Operating Agreement
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
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Feb 10, 20256 min read
“Initiating Proceedings” Under CPLR 3215(c) Revisited
By: Jonathan H. Freiberger Today we revisit CPLR 3215(c) , a provision addressed by this BLOG several times before. See, e.g., < here =">here</a>"> , < here =">here</a>"> , < here =">here</a>"> , < here =">here</a>"> , < here =">here</a>"> , < here =">here</a>"> and < here =">here</a>"> . As previously discussed in our prior BLOGS, and by way of brief background, CPLR 3215(c) provides, in pertinent part, that: If the plaintiff fails to take proceedings for the entry of judg
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Feb 7, 20255 min read
Issues of Fact Surround Application of Business Judgment Rule
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
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Feb 5, 20255 min read
Enforcement News: SEC Brings Enforcement Action Involving an Alleged $70 Million Pre-IPO Fraud Scheme
By: Jeffrey M. Haber Pre-IPO investing involves buying a stake in a company before the company makes its initial public offering of securities. Many stock promoters invite potential investors to invest in a pre-IPO offering by providing an opportunity to make high returns in a start-up enterprise on the ground floor. While investing at the pre-IPO stage can be rewarding, it involves risk for investors, including the risk of complete loss – i.e. , that the investor can lose h
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Feb 3, 20256 min read
Attorney’s Fees Provision Found Unconscionable
By: Jonathan H. Freiberger As discussed in prior BLOG articles, potential clients frequently inquire about the ability to recoup legal fees in the event of litigation. Certainly, a litigant’s ability to recoup legal fees and/or be forced to pay an adversary’s legal fees might be a significant factor in deciding whether to commence a lawsuit. Generally, the answer is explained by the “American Rule,” which provides that “the prevailing litigant is ordinarily not entitled to c
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Jan 31, 20254 min read
Contractual Disclaimers Undermine the Basis of Plaintiff’s Fraud-Based Claims
By: Jeffrey M. Haber As readers of this Blog know, to recover damages for fraud, a plaintiff must allege “a misrepresentation or a material omission of fact which was false and known to be false by defendant, made for the purpose of inducing the other party to rely upon it, justifiable reliance of the other party on the misrepresentation or material omission, and injury.” The element that most often spells failure for a plaintiff is reasonable reliance – that is, reliance on
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Jan 29, 202512 min read
General Release That Was Entered Because of Defendant’s Fraudulent Misrepresentations Held Not To Be Enforceable
By: Jeffrey M. Haber We have written frequently about the substance and scope of general releases. In New York, “a valid release constitutes a complete bar to an action on a claim which is the subject of the release.” If “the language of a release is clear and unambiguous, the signing of a release is a ‘jural act’ binding on the parties.” For this reason, “ release should never be converted into a starting point for … litigation except under circumstances and under rules
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Jan 27, 20256 min read
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