New York Court of Appeals
AG Capital Funding Partners, L.P., Plaintiffs v. State Street Bank and Trust Company, Defendant and…
November 17, 20055 N.Y.3d 582
Summary
The Court reinstated the negligence and contribution causes of action against UBS, Salomon and Thelen, finding that the third‑party complaint sufficiently alleged that these parties assumed a duty to deliver the Additional Secured Indebtedness Registration Statements. It also dismissed the attorney malpractice and negligent misrepresentation claims against Thelen for lack of privity. The decision was based on the de novo review of CPLR 3211 motions and the acceptance of industry custom evidence. Justice R.S. Smith dissented in part, arguing that Thelen should not be held liable.