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

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

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

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

By: Jonathan H. Freiberger As readers of this BLOG know, we frequently address issues involving mortgage foreclosure, generally, and notices of pendency, specifically. Today’s article involves both issues with a sprinkle of sanctions. By way of background, and as explained in prior articles, a notice of pendency (or lis pendens ) is a provisional remedy available to litigants seeking a judgment that affects title to real property. 5303 Realty Corp. v. O&Y Equity Corp. , 64 N.

By: Jeffrey M. Haber In New York, litigants often grapple with the appropriate limitation period to apply to breach of fiduciary claims. There is no single statute of limitations that the courts and the parties can look to. “Rather, the choice of the applicable limitations period depends on the substantive remedy that the plaintiff seeks.” “Where the remedy sought is purely monetary in nature, courts construe the suit as alleging ‘injury to property’ within the meaning of CP

By:  Jeffrey M. Haber In Katsorhis v. 718 W. Beech St, LLC , 2025 N.Y. Slip Op. 00211 (1st Dept. Jan. 15, 2025) ( here ), the Appellate Division, Second Department considered a fraud claim that the lower court sustained on the grounds that defendant failed to raise an issue of fact about a fact that was not a fact in dispute. The Court also considered whether the motion court erred in denying defendants’ motion to dismiss plaintiffs’ claims alleging violations of General Busi

By: Jonathan H. Freiberger As readers of this BLOG know, we frequently address issues involving mortgage foreclosure and usury. Today’s article involves both issues. By way of background, and as explained in prior articles, usury statutes were developed to “protect desperately poor people from the consequences of their own desperation.” Seidel v. 18East 17 th Street Owners, Inc. , 79 N.Y.2d 735, 740 (1992) (citations and internal quotation marks omitted). “To successfully r

By:  Jeffrey M. Haber In Hobish v. AXA Equit. Life Ins. Co. , 2025 N.Y. Slip Op. 00183 (Jan. 14, 2025) ( here ), the New York Court of Appeals addressed the question of whether punitive damages can be awarded to a successful party under General Business Law (“GBL”) § 349. Answering the question in the negative, the Court, in an opinion written by Judge Shirley Troutman, resolved a split among the appellate divisions. GBL § 349 applies to virtually all economic activity, and i