In this week’s New York Business Divorce, learn how a son’s betrayal of his own mother while managing the famous Stardust Diner ensnared an accounting firm in claims of malpractice and aiding and abetting fraud for declining to inform the mother of the son’s financial misdeeds.
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Borrok
Summary Judgment in Lieu of Complaint Meets Business Divorce
Most practitioners believe the summary judgment in lieu of complaint statute, CPLR 3213, applies just to contracts involving loans or other indebtedness. Not so. In a recent decision, a Manhattan Commercial Division Justice granted summary judgment in lieu of complaint, entering a money judgment for nearly $35 million, based upon a seldom litigated provision of the statute permitting accelerated treatment “upon any judgment” – in this case, a prior declaratory judgment. Read about the Court’s novel approach to summary judgment in lieu of complaint in this week New York Business Divorce.
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A Loan Is a Loan Is a Loan, Except When It’s Equity
Characterizing funds transfers to and from the company and its owners as either loan or capital transactions, and failing to adequately document such transactions, can have drastic financial, tax, and litigation consequences. Learn more in this week’s New York Business Divorce.
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Limited Partnerships and the Self-Fulfilling Dissolution Petition
Partners of New York limited partnerships should sit up and take notice of a new, first-impression decision holding that the commencement of a dissolution proceeding against, or the appointment of a receiver for, the limited partnership can, in and of itself, result in withdrawal of the general partner and dissolution of the entity, even if the limited partnership agreement does not say so. Read about this important decision with profound implications for New York limited partnerships and their owners in this week’s New York Business Divorce.
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LLC’s Post-Dissolution Receivership is On, is Off, is On
LLCs in receivership is our topic for the second week in a row. This week’s post looks at a dispute between 50/50 LLC members involving the on-again, off-again appointment of a post-dissolution receiver.
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