News & Blog

Kelley Jasons Obtains Dismissal for Defendant-Client in Indemnification Case

On September 4, 2024, Justice Louis L. Nock of the New York County Supreme Court issued an Order granting KJMSH&R’s motion to dismiss on behalf of its client, a respected New York court servicing company. In a Third-Party Complaint, Defendant/Third-Party Plaintiff (a guarantor for a title abstract company) alleged that he was entitled to indemnification from KJMSH&R’s client, based on the client’s alleged failure to timely record a mortgage for the title abstract company. In its motion, KJMSH&R argued that the third-party action must be dismissed on the grounds that even assuming, arguendo, the client failed to record the mortgage (which the client vehemently denies), no indemnification claims could stand due to a lack of privity between the guarantor and the client. Indeed, “the key element of a common law cause of action for indemnification is not a duty running from the indemnitor to the injured party, but rather is a separate duty owed the indemnitee by the indemnitor”. Raquet v. Braun, 90 N.Y.2d, 177, 183 (1997). The Court agreed with KJMSH&R, finding that there was “no relationship of any kind” between the guarantor and KJMSH&R’s client, and as such, any relationship which the client could have potentially owed to the title abstract company is “far too tenuous” to attach to the guarantor. The successful motion was drafted and briefed by KJMSH&R Partner, Lee Schneider.