Under New York Insurance Law § 3105, insurers have an out. If you materially misrepresent something when buying insurance, the insurer can get out of the contract. That's valuable to insurers as it transfers the risk of loss when the insurer was induced to issue a policy based upon false information. In Ambac Assur. Corp. …
Third Department, This Time, Upholds Expulsion of Student for Sexual Assault
In Matter of Weber v State Univ. of N.Y., Coll. At Cortland, the Third Department confirmed a SUNY determination to expel a student for sexually assaulting another student, finding that the victim never consented to sex. This case is pretty clear cut and would not be that remarkable if it wasn't for the Third Department's …
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First Department Holds Obligation to Repurchase Residential Mortgage Backed Securities Terminates After 6 Years
In Bank of N.Y. Mellon v WMC Mtge., LLC, Bank of NY Mellon was left holding thousands of defective residential mortgage backed securities after the real estate market collapse in 2008. The Bank of NY, which became the administrator of the loans in a securitized trust in June 2006, sued WMC Mortgage and JPMorgan Chase …
Second Circuit Holds that in Recission Action, Entire Value of Contract is Amount in Controversy for Jurisdictional Purposes
In Pyskaty v. Wide World of Cars, LLC, the Second Circuit joins the Third and Sixth Circuits in holding that when a plaintiff sues for rescission of a contract, the total value of the contract, without any offsets, is the amount in controversy for jurisdictional purposes. In Psykaty, the plaintiff bought a certified pre-owned BMW …
Court of Appeals Holds Attorney’s Fees are Available to Prevailing Plaintiff Against the State in a Pre-2015 Action Under the Human Rights Law
In Kimmel v State of New York (No. 36), previewed here and here, the Court of Appeals was asked whether an award of attorney's fees is available to a prevailing plaintiff against the State under the Equal Access to Justice Act (CPLR article 86) in an action alleging sex discrimination by a state agency in …
Court of Appeals Holds Police Can Run License Plate Without Reasonable Suspicion Because It is Not a Search
In People v Bushey (No. 50), the Court of Appeals was asked to decide if it was an unreasonable search for the police to run a license plate of a driver who was obeying the rules of the road through a Department of Motor Vehicles database to check for any outstanding violations. In Bushey, the …
SDNY Judge Holds Sexual Orientation Discrimination is Cognizable Under Title VII
In Philpott v State of New York (SDNY Case No. 16 CIV 6778), U.S. District Court Judge Alvin K. Hellerstein decided he wouldn't wait to see if the Second Circuit would grant en banc review in Christiansen v Omnicom Group to hold that Title VII prohibits discrimination on the basis of sexual orientation. Relying on Chief …
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Court of Appeals Holds Fraudulent Inducement Claims Cannot Be Based on Lost Business Opportunities
In Connaughton v Chipotle Mexican Grill, Inc. (No. 46), a celebrity chef sued Chipotle for fraudulent inducement after he entered an agreement to develop a ramen noodle chain for Chipotle. The deal, however, fell through when the plaintiff was told that Chipotle had previously entered a similar deal with a different celebrity chef, and that …
Court of Appeals Says Recertified Judges May be Barred from Receiving Pension While Still on the Bench
Under the New York Constitution, judges cannot continue to sit on the bench beyond the end of the year that they turn 70 years old unless they are recertified for an additional 2 year term. Recertification can happen three times, with judges forced to step off the bench entirely at 76. The determination whether to …
Second Circuit Holds Lehman Bros. Restricted Stock Units Must Be Subordinated in Bankruptcy
When Lehman Brothers went under, many of its employees were left holding restricted stock units that could have been converted to common stock 5 years after they were issued. Lehman's bankruptcy before the 5 years expired, however, rendered the restricted stock units worthless. So, the employees filed claims against Lehman's bankruptcy estate to recover the …
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