On Monday, June 29, 2020, Alexander Klein obtained the dismissal of a one million dollar lawsuit arising out of an alleged commercial dispute between an auto body shop and the manager of a well known BMW dealership. Representing the manager, Klein argued that all three causes of action in the lawsuit failed to satisfy the pleading requirements in New York’s Civil Practice Law and Rules. The Supreme Court of the State of New York, County of Nassau, agreed—issuing a comprehensive decision that ultimately dismissed the case in its entirety.
Of particular importance, this case—280 East Shore Realty, LLC, et al. v. Liangas—addresses the complex corner of business litigation in which a corporate officer is sued personally for causing an alleged breach of contract by his employer. Klein argued, and the Court ultimately recognized, that this type of claim requires allegations not only that the officer caused the alleged contract breach but, also, that the officer acted through the commission of a separate and independent tort. Thus, this ruling is not only a welcome rejection of the meritless suit against BEKAL’s client, but it is also an important addition to the literature governing the rights, responsibilities, and protections afforded to officers and executives of commercial entities.
Click here to read the full decision.