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Oral Agreements and Contract Formation
By: Jeffrey M. Haber It should go without saying that a plaintiff claiming breach of contract should demonstrate that the parties formed a contract that has been breached. In fact, as discussed below, contract formation is the first element of a breach of contract claim. Typically, when there is a written agreement, issues of contract formation do not arise. Instead, the issue often arises in the context of an oral agreement, the exchange of emails, letters of intent, and te
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Nov 28, 20226 min read
Reliance on Counsel Found to Waive Attorney-Client Privilege
By: Jeffrey M. Haber “The attorney-client privilege shields from disclosure any confidential communications between an attorney and his or her client made for the purpose of obtaining or facilitating legal advice in the course of a professional relationship.” 1 The privilege “fosters the open dialogue between lawyer and client that is deemed essential to effective representation.” 2 “It exists to ensure that one seeking legal advice will be able to confide fully and freely
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Nov 23, 20226 min read
Enforcement News: Penny Stocks and the Importance of Registering as a Broker
By: Jeffrey M. Haber As a general matter, a “broker” must register with the SEC in order to transact business on behalf of another person. It is, therefore, unlawful for any person to “effect any transactions in, or to induce or attempt to induce the purchase or sale of, any security” unless that person is registered with the Securities and Exchange Commission (“SEC”).1 Whether a person is acting as a “broker” is governed by Section 3(a)(4)(A) of the Exchange Act, 15 U.S.C. §
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Nov 21, 20222 min read
SECOND DEPARTMENT CALCULATES DEFICIENCY JUDGMENT IN MORTGAGE FORECLOSURE ACTION
By Jonathan H. Freiberger Much has been written in this Blog about mortgage foreclosure actions. In this Blog’s prior article: “Second Department Addresses Issues Regarding Proof of Value of Foreclosed Property for the Purpose of Calculating Deficiency Judgment Under RPAPL 1371” , we discussed deficiency judgments. By way of brief background, loans are generally evidenced by a promissory note. The borrower’s repayment obligations are frequently secured by a mortgage on rea
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Nov 18, 20224 min read
Contractual Indemnification: Cohen v. Trump Organization LLC
By: Jeffrey M. Haber As a general matter, indemnity is defined to encompass a duty to make good on any loss, damage, or liability incurred by another. Therefore, when a person agrees to indemnify another, he or she agrees to hold the other person harmless for some loss or damage. Indemnification “may be based upon an express contract,” though it is “more commonly” implied “based upon the law’s notion of what is fair and proper as between the parties.” 1 Where the right to i
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Nov 16, 20228 min read
First Department Holds That Scaffolding and Sidewalk Shed Installed For Construction Project Could Not Support Mechanic’s Lien Because They Were Not “Permanent Improvements”
By Jonathan H. Freiberger This Blog, in “ The New York Court of Appeals Addresses the Issue of When a Mechanic’s Lien Can Be Placed on a Landlord’s Property By A Contractor Performing Work For A Tenant ,” quoting John P. Kane Co. v. Kinney , 12 Bedell 69 (1903), explained the purpose of a mechanic’s lien as follows: The object and purpose of mechanics’ lien law was to protect a person who, with the consent of the of the owner of real property, enhanced its value by furnishin
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Nov 14, 20223 min read
First Department Holds That Respondent Is Not Entitled To The Recovery Of Professional And Attorney’s Fees When It Successfully Defends An RPAPL 881 Proceeding And A License Is Not Issued To Petiti...
By Jonathan H. Freiberger As discussed in prior Blog articles, property owners sometimes require access to a neighbor’s property to make repairs to their own property. Neighbors can amicably (with legal counsel or not) arrange for the requested access, which, in many cases, will involve a formal written access agreement. Neighbors are not always neighborly, however, and refuse voluntary access. In such cases, the party requiring access can seek court ordered access pursuant
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Nov 4, 20225 min read
Court Finds Performance of an Accounting Within the Scope of the Arbitrator’s Authority
By: Jeffrey M. Haber It is well settled that the scope of judicial review of an arbitration proceeding is very limited. An arbitration award will be confirmed as long as the arbitrator “offer even a barely colorable justification for the outcome reached”. 1 If any plausible basis exists for the arbitrator’s decision, a court will confirm the award. 2 Because of the significant degree of deference afforded to arbitration awards, vacatur will not be obtained when the bases fo
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Nov 2, 20225 min read
Court of Appeals Provides the Contours of the Notice Requirement Under CPLR § 203(f)
By: Jeffrey M. Haber On October 27, 2022, the New York Court of Appeals decided 34-06 73, LLC v. Seneca Ins. Co. , 2022 N.Y. Slip Op. 06029 (2022) (here), a case in which the Court determined the contours of CPLR § 203(f). In a unanimous decision, written by Judge Rivera, the Court held that plaintiffs’ initial complaint, alleging that defendant breached the insurance agreement between the parties, did not give defendant notice of a subsequently alleged reformation claim base
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Oct 31, 202210 min read
Freiberger Haber’s Co-Founding Partners Once Again Recognized by Super Lawyers Magazine®
Melville, NY October 28, 2022 – Freiberger Haber LLP is pleased to announce that co-founding partners, Jonathan H. Freiberger and Jeffrey M. Haber, have been named by Super Lawyers magazine to be among the top lawyers in the New York metropolitan area. This is Mr. Freiberger’s third, and Mr. Haber’s eleventh, consecutive year of selection. Both Messrs. Freiberger and Haber were recognized for their work in business and commercial litigation. Super Lawyers Magazine® is an aff
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Oct 28, 20222 min read
Court finds Merchant Cash Advance Agreement Not to Be an Instrument for The Payment of Money Only
By: Jeffrey M. Haber In past articles, we have examined a motion under CPLR § 3213 ( see , e.g. , here , here , here , and here ). CPLR § 3213 is a procedural mechanism that allows a party to make a motion for summary judgment before filing a complaint in actions based upon “an instrument for the payment of money only or a judgment.” The purpose of the statute “is to provide an accelerated procedure where liability for a certain sum is clearly established by the instrument it
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Oct 26, 20224 min read
Enforcement News: SEC Files Charges Against A Real Estate Development Firm for Perpetrating A $600 Million Ponzi-like Scheme
By: Jeffrey M. Haber Tasty Minstrel Games LLC (“TMG”) is a company, located in Utah, that produces board games.1 The best-known game released by TMG is Yokohama, a board game that takes place in the Meiji era of Japanese history. Another game that TMG produces is “Ponzi Scheme”. In Ponzi Scheme, players try to trick each other into funding fraudulent investments with the promise of extremely high returns. Like a real Ponzi scheme, the scheme works as long as new investors ke
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Oct 24, 20225 min read
NEW YORK COURT OF APPEALS REAFFIRMS THAT, WITH RESPECT TO SHIFTING OF RESPONSIBILITY FOR PAYMENT OF ATTORNEY’S FEES, THE AMERICAN RULE RULES
By Jonathan H. Freiberger As discussed previously in this Blog < here =">here</a>"> , the first question asked by a potential client when consulting about a new litigation matter is “can we sue them for our legal fees.” Clients are often dismayed to learn that attorney’s fees are not generally recoverable in litigation under the “American Rule,” because “ n the United States, the prevailing litigant is ordinarily not entitled to collect a reasonable attorney fee from the los
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Oct 21, 20224 min read
Words Have Meaning
By: Jeffrey Haber In prior articles, we have talked about the importance of saying what you mean in a contract. ( E.g. , here and here .) When contracts are clear and unambiguous, the meaning ascribed to the words used therein will be enforced because they reflect the intent of the parties. Such was the case in Padron v. Granite Broadway Dev. LLC , 2022 N.Y. Slip Op. 05798 (1st Dept. Oct. 18, 2022). In Padron , plaintiff claimed that he sustained injuries when he slipped and
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Oct 19, 20224 min read
Issues of Fact Prevent Application of The Voluntary Payment Doctrine, Says The First Department
By: Jeffrey M. Haber The voluntary payment doctrine bars recovery of payments voluntarily made with full knowledge of the facts, and in the absence of fraud or material mistake of fact or law. 1 Notably, there is a presumption that payments are voluntary. 2 Thus, to rebut the presumption, the plaintiff must show that he/she protested the payment. In order for a protest to be effective, it must be in writing and (with some exceptions, as discussed below) made at the time of
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Oct 17, 20229 min read
SUBCONTRACTOR TO UNLICENSED GENERAL CONTRACTOR NOT PERMITTED TO MAKE CLAIM DIRECTLY AGAINST HOMEOWNER
By Jonathan H. Freiberger Municipalities generally require home improvement contractors to be licensed to perform work. “Where a home improvement contractor is not properly licensed in the municipality where the work is performed at the time the work is performed, the contractor forfeits the right to recover for the work performed, both under the contract and on a quantum meruit basis.” Brightside Home Improvements, Inc. v. Northeast Home Improvement Services , 208 A.D.3d 4
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Oct 14, 20224 min read
Out-of-pocket Fraud Damages: Proof Required to Determine the Value of Restricted Securities
By: Jeffrey M. Haber Since the early 20th century, a plaintiff alleging fraud in New York can recover only the actual pecuniary loss sustained as a result of a misrepresentation or omission, i.e. , the plaintiff’s out-of-pocket damages. 1 The damages recoverable under the out-of-pocket rule are intended to compensate plaintiffs for what they lost because of the fraud, not for what they might have gained. 2 The out-of-pocket rule was at issue in Danco Enters., LLC v. Livexliv
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Oct 11, 20225 min read
SPOLIATION OF EVIDENCE
By Jonathan H. Freiberger Section 3101 of the CPLR provides that, in general, “there should be full disclosure of all matter material and necessary in the prosecution or defense of an action, regardless of the burden of proof” by, inter alia , a party and its representatives. “Material and necessary” is “to be interpreted liberally to require disclosure, upon request, of any facts bearing on the controversy which will assist preparation for trial by sharpening the issues an
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Oct 7, 20225 min read
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