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Firm Wins Summary Judgment Dismissing Millions in Damages Claims and Granting Attorneys’ Fees in Business Divorce

In a decision and order, dated July 11, 2023, Judge Schecter of the New York County Supreme Court, Commercial Division, granted Kane Kessler’s motion for summary judgment on behalf of its client dismissing millions in potential damages claims in connection with the formation and wind-down of a media and marketing company. The case is Hardwick v. Ripple Collective LLC, et al, No. 656474/2018 (Sup. Ct. N.Y. Cnty.) (Comm. Div.) (Schecter, J.) The plaintiff, the company’s former CEO, alleged that the client engaged in fraud, breach of fiduciary duty and other business torts in connection with the management and operation of the company. Kane Kessler successfully argued on summary judgment that the vast majority of plaintiff’s damages claims were precluded by the written agreements between the parties that converted plaintiff’s capital contributions into equity and that the speculative claim for “loss of capital appreciation” was derivative. Judge Schecter further held that the client was entitled to reasonable attorneys’ fees and costs under the applicable agreements. The attorneys for the Firm who represented the client were S. Reid Kahn and Jonathan M. Sabin of the Firm’s Litigation Department.