Second Circuit Rejects Law Firm Challenge to NY Rules Barring Non-Lawyer Investment in Law Firms

In Jacoby & Myers, LLP v Presiding Justices of the First, Second, Third and Fourth Departments, the Second Circuit rejected a law firm's challenge to NY's rules barring non-lawyer investment in law firms.  The Court held that lawyers do not have First Amendment rights to associate and petition by accepting non-lawyer investment, and even if they …

First Department Questions Propriety of Rule Limiting Liability for Domestic Animals to Viscious Propensities

In Scavetta v Wechsler, the First Department affirms the dismissal of negligence claims against the owner of a dog that, when leashed to a bicycle rack, dragged the rack into the street injuring the plaintiff. Although the Court noted that it was constrained to dismiss the case by the Court of Appeals' vicious propensities rule in …

In Case of First Impression, First Department Holds RMBS Trustee Has Standing to Enforce Putback Rights

In Natixis Real Estate Capital Trust 2007-HE2 v Natixis Real Estate Holdings, LLC, the First Department holds, in a case of first impression in NY, that the Securities Administrator of a residential mortgage backed securities (RMBS) trust has standing to bring an action to enforce putback rights, in addition to the standing normally granted to …

In Basis PAC-Rim Opportunity Fund (Master) v TCW Asset Mgt. Co., the First Department holds loss causation lacking in a residential mortgage backed securities fraud case where the investment tanked at  the same time as the housing market. The Court clarified that it is not impossible to show fraud in the event of a market …

Court of Appeals Holds County Not Liable for Sexual Assault of Plaintiff at County-Owned BOCES Program

In Tara N.P. v Western Suffolk Bd. of Cooperative Educational Services (No. 8) previewed here, a teenage female student was sexually assaulted by a Level III sex offender that Suffolk County had assigned to perform maintenance work at the BOCES program where the student was taking classes. The County owned the property and leased the building to …

Court of Appeals Declares that No Insurance Coverage Exists for Tower Crane Damaged During Superstorm Sandy

In Lend Lease (US) Construction LMB Inc. v Zurich American Insurance Company (No. 11) previewed here, the owner and construction manager of a 74-story high rise being built in midtown Manhattan sought coverage for damage caused to the tower crane being used to build the building during Superstorm Sandy in October 2012. Zurich, one of …

Court of Appeals Holds the State Cannot be Apportioned Fault in Personal Injury Case in Supreme Court

In Artibee v Home Place Corporation (No. 5) previewed here, the Court of Appeals held that CPLR 1601(1), which modifies the normal rule of joint and several liability by limiting the liability of a joint tortfeasor with 50% or less of the total liability for noneconomic loss to the tortfeasor’s actual proportion of fault, does …

Court of Appeals Holds that the Term “Mediation” in a Fee Sharing Agreement is Not Necessarily Limited to a Single Day

In Marin v Constitution Realty, LLC (Menkes v Golomb) (No. 2), an attorney fee sharing dispute previewed here, plaintiffs' principal attorney, Sheryl Menkes, retained Jeffrey A. Manheimer to act as her co-counsel for the case, to take depositions, and to take the case to trial if necessary. Their agreement provided that for these services, Manheimer would …

Court of Appeals Holds that Municipality May be Liable for Negligent Failure to Prevent Criminally Reckless Speeding on Its Roadways

In Turturro v City of New York (No. 196) previewed here, the Court of Appeals was asked to determined whether a municipality may be held liable for failing to keep its roads in a reasonably safe condition where it has notice that drivers speed along its roads and the municipality doesn’t take reasonable action to …

In Extensive Treatment of Proximate Cause, Court of Appeals Reinstates Cross Claims Against Defendant, But Denies Non-Appealing Plaintiff Same Relief

In Hain v Jamison (No. 201) previewed here, the Court of Appeals reversed an order of the Appellate Division, Fourth Department that had dismissed all claims against a farm that owned an escaped calf that the decedent had stopped her car to help out of the middle of the road. The Fourth Department had held …