Matters

Real Estate Management Company – Precedent Setting Decision in Wage & Hour Action

Successful defense of a real estate management company and its principal sued by a former residential janitor and two alleged former laborers at New York City properties managed by our client. The plaintiffs claimed minimum wage and overtime violations under the Fair Labor Standards Act and New York Labor Law, as well as related common law claims. The court granted, in substantial part, our motion to dismiss, striking 9 of the plaintiffs’ 12 claims in one of the first decisions to interpret the minimum wage and overtime provisions under New York law and the Minimum Wage Order for the Building Service Industry as they relate to residential janitors.

Appellate Division Reverses Civil Penalty against Landlord over ADA Accommodations

Herrick achieved a significant appellate victory on behalf of a national real estate development and management firm, securing a ruling from the Appellate Division, Second Department that reversed a New York City Commission on Human Rights order requiring the client to pay a $185,000 fine for denying a tenant's request to construct a handicapped-accessible entrance to her Queens apartment. In its ruling, the court wrote that the record lacked "substantial evidence" to contradict our client’s claim that installing an accessible entrance was not structurally feasible. The decision was the culmination of a nearly 6-year-long dispute in which we initially prevailed on the client’s behalf before an administrative law judge who held that the proposed accommodation sought by the tenant was not reasonable. The Commission, however, summarily rejected the ruling, and awarded $200,000 in damages and penalties. A Queens Supreme Court affirmed the agency’s decision but reduced the award of damages. On appeal, and after oral argument, the Second Department reversed the trial court’s decision, holding that the Commission’s determination of unlawful discrimination and award of damages should have been annulled in its entirety.

Electricity Supplier – Class Action Alleging Violations of the Telephone Consumer Protection Act

Defending a national electricity services provider in a putative class action in New Jersey federal court alleging violations of the Telephone Consumer Protection Act.

Multiple Claims Dismissed in Shareholder Derivative Litigation

Secured a ruling in Kings County Supreme Court on behalf of a garment manufacturer and certain affiliated individuals and entities that dismissed several causes of action in a purported shareholder derivative suit. Among the claims asserted was the allegation that a competing entity had been used by certain defendants to usurp business opportunities, and that ownership of a company facility had been fraudulently transferred to a charitable trust and foundation. The court granted our motion to dismiss the claim for a constructive trust over either the alleged competing entity or the foundation; an unjust enrichment claim against the charitable trust and foundation defendants; and a claim of rescission of the alleged fraudulent transfer of the facility, which the court found was time-barred.

National Energy Supplier – Wage/Hour Class Action

Negotiated a favorable settlement on behalf of a national energy service company, avoiding protracted litigation in a wage and hour class action lawsuit alleging violations of federal and state labor laws.

Major League Baseball Franchise – Contract Dispute

Obtained summary judgment, including dismissal of all claims and recovery on counterclaim for breach of contract, on the district court level on behalf a Major League Baseball franchise in a contract dispute involving advertising and sponsorship rights, and protected judgment on appeal to the Second Circuit.

Limited Liability Company – Malpractice Claims

Representing a limited liability company in litigation with former counsel in a dispute involving allegations of malpractice in the preparation of a written operating agreement and the refinancing of a property located in Brooklyn. Action seeks to recover damages of over $11 million, plus interest and attorneys' fees.

Non-Profit Organization – Wrongful Termination and Discrimination Claims

Representing a New York City non-profit organization in a dispute with former employees claiming wrongful termination and discrimination based on age and sexual orientation.

Healthcare Services Provider – Alleged Violations of FLSA and Connecticut Wage and Hour Laws

Negotiated a favorable settlement on behalf of a leading provider of mental health services to resolve litigation filed in Connecticut federal court by a former staff psychologist alleging wrongful termination and failure to pay wages pursuant to the Fair Labor Standards Act and Connecticut Wage and Hour law.

Majority Shareholder – Successful Litigation for Control of Midtown Manhattan Property

Successful representation of a majority shareholder in a dispute with a minority stakeholder over control of a corporation whose sole asset was a valuable Manhattan property. Through litigation filed in New York state court, Herrick was able to secure the client control over a building located on prime midtown Manhattan real estate.

 

Residential Healthcare Facility – Wage/Hour Class Action

Representation of a nursing and residential health care facility in a wage and hour collective and class action lawsuit alleging violations of federal and state labor laws. This litigation was settled on terms favorable to our client.

International Media Company – Workers’ Compensation

Representation of an international media company in an investigation by the New York State Workers' Compensation Board.

Loan Acquisition – Boutique Real Estate Management and Investment Company

Represented a boutique real estate management and investment company on the acquisition of certain loans secured by vacant land located in Upper Manhattan (on which construction is contemplated of an affordable housing apartment building). The loans had an aggregate original principal balance of nearly $5.5 million.

Network Technology Company — Wage/Hour Class Action

Successful representation of a network technology company in litigating and settling a putative class action lawsuit brought by network technicians based on an alleged failure to pay prevailing wages and benefits on publically financed construction projects.

Title Insurance Company – Agent’s Fraud Imputed to Lender

Representation of a title insurance company against a lender whose agent committed a fraud that caused the loss of the insured mortgage. Our client successfully argued that since the agent acted on behalf of the bank, the fraud could be attributed to the bank and therefore fell under the policy’s exclusion for “acts of the insured.” The court’s ruling will have ramifications in the title insurance and mortgage lending industry since many sub-prime lenders relied upon unscrupulous agents to close their loans, and to the extent any frauds committed by those agents lead to a title loss, the lenders cannot look to the title insurers for indemnification.

International Investigation – Market Manipulation

Representation of a foreign citizen in connection with an indictment by the U.S. Attorney’s Office and an SEC investigation alleging market manipulation of multiple OTC securities in the U.S. markets via the internet.