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Sterling Natl. Bank v. Chang

Appellate Term of the Supreme Court of New York, First Department
Dec 7, 2005
2005 N.Y. Slip Op. 51986 (N.Y. App. Term 2005)

Opinion

570513/05.

Decided December 7, 2005.

Plaintiff appeals from an order of the Civil Court, New York County (Ellen Gesmer, J.), dated March 22, 2005, which denied its motion for summary judgment and to strike defendant's affirmative defenses.

Order, (Ellen Gesmer, J.), dated March 22, 2005, affirmed, with $10 costs.

PRESENT: Suarez, P.J., Davis, Schoenfeld, JJ.


In this action for recovery under what is known as a "hell or high water" clause of an equipment lease, triable issues of fact exist as to alleged fraud in the inducement by the original lessor, and plaintiff's alleged knowledge or notice of such fraud ( see Wells Fargo Bank v. Stargate Films, 18 AD3d 264; Norwest Fin. Leasing v. Parish of St. Augustine, 251 AD2d 125), which would adversely affect plaintiff's standing as a holder in due course of the assigned lease (UCC 3-305[c]). Plaintiff failed to offer an affidavit by anyone with personal knowledge of the original transaction that might bear on resolution of these issues. Similarly, the forum-selection clause in the lease is subject to challenge where a defendant can demonstrate it is invalid because of fraud or overreaching, or that its enforcement would be unreasonable or unjust ( see British W. Indies Guar. Trust Co. v. Banque Internationale A Luxembourg, 172 AD2d 234).

This constitutes the decision and order of the Court.


Summaries of

Sterling Natl. Bank v. Chang

Appellate Term of the Supreme Court of New York, First Department
Dec 7, 2005
2005 N.Y. Slip Op. 51986 (N.Y. App. Term 2005)
Case details for

Sterling Natl. Bank v. Chang

Case Details

Full title:STERLING NATIONAL BANK, as assignee of Norvergence, Inc.…

Court:Appellate Term of the Supreme Court of New York, First Department

Date published: Dec 7, 2005

Citations

2005 N.Y. Slip Op. 51986 (N.Y. App. Term 2005)
809 N.Y.S.2d 484