NY Court Puts The Brakes On Overreaching Creditors

Law360, New York (November 7, 2014, 10:08 AM EST) -- In times of economic turmoil, when businesses are failing and cash-flow is tight, creditors often seek to cast a wide net to reach entities other than the company for whom the creditor has provided services and which contractually owes the obligation. Recently the Commercial Division of the New York County Supreme Court issued a pair of decisions curbing creditors' efforts to reach beyond the contracting party to capture entities or individuals with whom it was not in privity....

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