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You are here: Home1 / Contract Law2 / THE WARRANT ENTITLING PLAINTIFF TO MORE THAN 1100 SHARES OF DEFENDANT CORPORATION’S...
Contract Law, Employment Law

THE WARRANT ENTITLING PLAINTIFF TO MORE THAN 1100 SHARES OF DEFENDANT CORPORATION’S STOCK WAS APPENDED TO PLAINTIFF’S EMPLOYMENT CONTRACT WITH DEFENDANT; THE TWO CONTRACTS DID NOT MERGE AND ANY ALLEGED BREACH OF THE EMPLOYMENT CONTRACT BY PLAINTIFF DID NOT PRECLUDE THE ENFORCEMENT OF THE WARRANT (FIRST DEPT).

The First Department, in a full-fledged opinion by Justice Oing, affirming Supreme Court, determined that the Warrant was a separate contract entitling plaintiff to 1,148 shares of defendant corporation, SPI. SPI argued the Employment Contract and the Warrant merged forming a single contract and plaintiff’s breach of the Employment Contract precluded recovery on the Warrant. The First Department held that the fact that the Employment Contract was appended to the Warrant was not enough to demonstrate the two contracts merged:

SPI argues that appending the Employment Agreement to the Warrant demonstrates integration of the two agreements, or at a minimum raises a factual issue, relying on Starr Indem. & Lia. Co. v Brightstar Corp. (388 F Supp 3d 304 [SD NY 2019]). The argument is unavailing because it is based on a misreading of Starr Indemnity. That decision held that, to incorporate a document into another agreement, “[n]o particular mode of reference is necessary for that purpose; any language which indicates the intent that the two shall make one instrument, or a physical annexing of the one to the other, in a manner or under circumstances [*6]showing clearly such intent, is sufficient” … . SPI overlooks the element of intent in its argument, basing its position solely on the fact that the Employment Agreement is attached to the Warrant. The mere fact that the Employment Agreement is appended to the Warrant is insufficient, standing alone, to demonstrate incorporation. Absent from the Warrant is any contractual language indicating a clear and unequivocal intent to incorporate and integrate the Employment Agreement. Instead, the Warrant simply states without qualification that plaintiff and SPI had entered into the annexed Employment Agreement, and fails to set forth any language providing for integration of the two agreements … . O’Connor v Society Pass Inc., 2024 NY Slip Op 05141, First Dept 10-17-24

Practice Point: The fact that one contract is appended to another, standing alone, is not enough to demonstrate the two contracts merged or were integrated.​

 

October 17, 2024
Tags: First Department
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https://www.newyorkappellatedigest.com/wp-content/uploads/2018/03/NYAppelateLogo-White-1.png 0 0 Bruce Freeman https://www.newyorkappellatedigest.com/wp-content/uploads/2018/03/NYAppelateLogo-White-1.png Bruce Freeman2024-10-17 18:09:572024-10-19 18:32:11THE WARRANT ENTITLING PLAINTIFF TO MORE THAN 1100 SHARES OF DEFENDANT CORPORATION’S STOCK WAS APPENDED TO PLAINTIFF’S EMPLOYMENT CONTRACT WITH DEFENDANT; THE TWO CONTRACTS DID NOT MERGE AND ANY ALLEGED BREACH OF THE EMPLOYMENT CONTRACT BY PLAINTIFF DID NOT PRECLUDE THE ENFORCEMENT OF THE WARRANT (FIRST DEPT).
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EXPULSION OF PETITIONER-STUDENT FROM THE PHYSICIAN ASSISTANT PROGRAM “SHOCKED [THE COURT’S] SENSE OF FAIRNESS;” PETITONER WAS REINSTATED IN GOOD STANDING (FIRST DEPT). ​
BECAUSE THE DEFENDANT EMPLOYER SUFFERED NO DAMAGE AS A RESULT OF PLAINTIFF’S BREACH OF THE CONFIDENTIALITY PROVISION OF THE EMPLOYMENT CONTRACT, DEFENDANT EMPLOYER WAS NOT ENTITLED TO ENFORCEMENT OF THE LIQUIDATED DAMAGES PROVISION IN THE CONTRACT; PLAINTIFF’S BREACH-OF-AN-ORAL-CONTRACT CAUSE OF ACTION SHOULD NOT HAVE BEEN DISMISSED BECAUSE PLAINTIFF SUBMITTED EVIDENCE OF PARTIAL PERFORMANCE BY DEFENDANT AND PLAINTIFF’S RELIANCE ON THE ORAL MODIFICATION (FIRST DEPT).
HERE AN INDEPENDENT CLEANING CONTRACTOR APPARENTLY CREATED A DANGEROUS FLOOR CONDITION WHICH INJURED PLAINTIFF; ALTHOUGH THE COMPANY WHICH HIRED THE INDEPENDENT CONTRACTOR WAS NOT LIABLE FOR THE INDEPENDENT CONTRACTOR’S NEGLIGENCE, MARSHALLS, THE RETAIL STORE WHERE THE INJURY OCCURRED, COULD BE VICARIOUSLY LIABLE FOR THE INDEPENDENT CONTRACTOR’S NEGLIGENCE BECAUSE MARSHALLS HAS A NONDELGABLE DUTY TO KEEP THE PUBLIC AREAS OF ITS STORE SAFE; WHETEHER MARSHALLS HAD NOTICE OF THE DANGEROUS CONDITION IS NOT AN ISSUE WHERE VICARIOUS LIABILITY MAY APPLY (FIRST DEPT).
IF THE UNDERLYING INSURANCE POLICY DOES NOT INDICATE THAT A WRITTEN AGREEMENT NAMING A PARTY AS AN ADDITIONAL INSURED MUST BE SIGNED, AN UNSIGNED DOCUMENT TO THAT EFFECT IS ENFORCEABLE (FIRST DEPT).
THE FOIL REQUEST FOR THE EMAIL ADDRESSES OF ALL NEW YORK CITY EMPLOYEES PROPERLY DENIED UNDER THE CYBERSECURITY EXEMPTION (FIRST DEPT).
QUESTION OF FACT WHETHER DEFENDANT EXERCISED SUFFICIENT CONTROL OVER THE WORK TO BE LIABLE UNDER LABOR LAW 200 AS AN AGENT OF THE OWNER AND GENERAL CONTRACTOR.
Published Information Gleaned from Court Submission Privileged
NONSIGNATORY NOT BOUND BY ARBITRATION CLAUSE IN ENGAGEMENT LETTER (FIRST DEPT).

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