Generally, the law recognizes parties’ freedom to enter into a contract under the terms of their choosing. Parties can freely determine the terms of their personal and business affairs unless the agreement is illegal. However, one area where New York law steps in to impose limitations on parties’ freedom of contract is with usury laws. … Read more
Typically, officers and employees of corporations or limited liability companies are not personally liable for acts taken in a corporate capacity. However, there are important exceptions. As discussed in a previous post, when a corporate entity fails to follow corporate formalities and its shareholders mingle personal and corporate funds, the shareholders may be personally liable … Read more
In any litigation, information that is relevant or intended to lead to relevant information is discoverable unless it falls within an exception. Relevant information which is privileged such as communications between an attorney-client, physician-patient, and spouses as well as attorney work product are common exceptions to the discovery rule. In the context of insurance coverage … Read more
Most cooperative corporations (“co-ops”) issue House Rules which are generally adopted by the Co-Op Board and must be followed in addition to those obligations set forth in the Proprietary Lease. Co-op owners (or shareholders) are generally provided with a copy of the newly adopted House Rules by the managing agent. Many owners don’t realize that … Read more
When someone files a lawsuit, he/she must serve papers on the defendants to establish the Court’s personal jurisdiction over them. There are laws governing how and when serving papers can occur in order to be valid. Among the rules that apply are those dealing with serving papers on the Sabbath. Importantly, a recent New York Appellate … Read more
Employers should be aware of recent changes to the I-9 Employment Eligibility Verification form, which all employers must use. Since November 1986, when Congress passed the Immigration Reform and Control Act (the “IRCA”), employers have been required to verify the identity and employment eligibility of prospective employees prior to hiring. The IRCA prohibits employers from … Read more
A few years ago, merchants knew not to charge a “surcharge” or extra fee for a customer who paid by credit card instead of fees because most major credit card agreements did not allow it. As a result of antitrust litigation, many credit card agreements no longer prohibit charging additional fees for credit card use. … Read more
Most contracts have a choice of law provision which identifies the state law which will apply in actions brought under the agreement. Often this clause isn’t given a lot of attention until there is a dispute. However, the choice of law can have a big impact on how a contract is interpreted and enforced so … Read more
Information contained in income tax returns can be relevant to various types of disputes. Therefore, parties may seek to “discover” the other party’s tax returns. However, courts generally do not require the disclosure of tax returns —even when the returns may be relevant—due to their private and confidential nature. Instead, courts apply a strict standard to … Read more
In certain types of cases, including antitrust and patent matters, “good faith” is a commonly asserted defense. However, claiming “good faith” is not without risk– doing so may force a defendant to reveal attorney-client communications. Companies faced with impending litigation need to consider the advantages and disadvantages of relying on a good faith defense particularly … Read more