Justice Elizabeth Emerson said the stock option agreements containing the noncompete clauses were nullified when the three former executives of the vitamin distributor NBTY elected not to exercise any of the options after resigning.
NY Commercial Litigation Insider
An investor who claimed he was defrauded of $4 million had his case dismissed by Manhattan Commercial Division Justice Anil Singh, who said it is "not the court's role to insulate sophisticated business entities from the consequences of their own risky investments."
A multimillion dollar arbitration award in favor of Major League Baseball and the Washington Nationals baseball team involving broadcast revenues was the result of "an utter lack of concern for the fairness of the proceeding," a Manhattan judge said in vacating the arbitrator's decision.
Justice Charles Ramos said the proposed settlement in 'In re Allied Healthcare' offered nothing to shareholders "except that attorneys they did not hire will receive a $375,000 fee and the corporate officers who were accused of wrongdoing will receive general releases."
In their International Litigation column, Lawrence W. Newman and David Zaslowsky discuss the issues that must be considered when determining whether a defendant located outside the United States may be served by email, such as the applicability and wording of Article 10 of the Hague Convention and the specific facts of the case.
In his Tax Litigation Issues column, Jeremy H. Temkin writes that the economic substance doctrine has proven to be broad and flexible, with its standard evolving to address new transactions the government claims are illegitimate. Courts, however, have split on the application of the economic substance doctrine to transactions designed to take advantage of foreign tax credits.
Julian D. Ehrlich writes: Two of the most commonly used phrases to transfer risk in additional insured endorsements and contractual indemnity provisions are "liability arising out of your work" and "with respect to liability for bodily injury or property damage caused in whole or in part by your acts or omissions." Understanding how courts have interpreted these phrases is vital to parties both when drafting contracts and after a loss.
In their Commercial Division Update, George Bundy Smith and Thomas J. Hall write: While at times a claim for breach of the implied covenant of good faith and fair dealing would seem to pair with a claim for breach of contract, New York courts frequently find these claims to be duplicative when pleaded together, resulting in dismissal of the good faith claim. A number of recent Commercial Division cases demonstrate the circumstances under which such tandem pleading can and cannot survive.
- NBTY v. Vigliante, 606984-15
- TCR Sports Broadcasting Holding v. WN Partner, 652044/2014
- Katzrin Finance Group, LLC, Plaintiff v. Arcapex LLC, Blackthorn Advisory Group LLC, Light Sword LLC, Vincent Ney, Jon Geidel, and Katten Muchin Rosenman LLP, Defendants, 651129/2014
- Stilwell Value Partners v. Cavanaugh, 653011/2011