Gordon Rees Scully Mansukhani Senior Counsel Sarah N. Rodman recently secured a dismissal on behalf of the firm’s client, a global provider of real estate solutions headquartered in Arizona, before the Fourth Department Appellate Division of New York State.
The plaintiff, a property maintenance company, filed a lawsuit in Buffalo, New York, for breach of contract, seeking payment for lawn care and snow plowing services it provided to commercial properties managed by the defendant. The plaintiff argued that the contract’s forum selection clause, which specified where disputes should be resolved, was invalid and against public policy. GRSM filed a motion to dismiss the complaint, which the New York State Supreme Court denied.
GRSM appealed the New York State Supreme Court’s decision. The Fourth Department Appellate Division of New York State agreed with GRSM’s appeal arguments that the plaintiff did not demonstrate that enforcement of the forum selection clause contravenes New York public policy or that enforcement would be unreasonable, unjust, or the result of fraud.
While awaiting the appeal decision, the plaintiff and defendant engaged in unsuccessful settlement discussions. The Fourth Department’s reversal of the State Supreme Court’s decision and the subsequent dismissal of the plaintiff’s complaint brought an end to the settlement negotiations.
This ruling represents a significant victory for GRSM’s client and sets an important precedent for future challenges to forum selection clauses. It also underscores the capabilities of the firm’s Commercial Litigation practice in handling complex contract disputes and delivering favorable outcomes for clients.