This month the Court of Appeals resolved an issue over which the Departments of the Appellate Division had been split—whether the buyer of real property suing the seller for repudiation of contract must prove that it was ready, willing and able to close—and held that it does. In another case, the Court found the defendants not subject to personal jurisdiction in New York for alleged defamation under the long-arm statute, which treats that tort differently from others, “as a result [of which], particular care must be taken to make certain that nondomiciliaries are not haled into court in a manner that potentially chills free speech…. ” Separately, the Court ruled for the Garrison school district in a dispute with an institution within its borders, holding that children housed in the institution who are not residents of the district must pay tuition to attend public school there.

Contract Repudiation

In Pesa v. Yoma Development Group, Inc., the Second Department of the Appellate Division had held, consistent with other decisions from that department, that the plaintiffs who had entered into a contract to purchase parcels of real property did not have to prove that they were ready, willing and able to proceed to a closing in order to recover damages from the seller that had repudiated the contracts. The ruling was at odds with decisions from the Third and Fourth departments, which have required plaintiffs in repudiation cases to make the “ready, willing and able” showing. This conflict was resolved when the Court of Appeals unanimously overturned the decision in Pesa and reversed the award of summary judgment in the plaintiff purchasers’ favor.

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