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Authentic Fitness Corp. v. Polymer Research Corp. of America
Citations: 251 A.D.2d 209; 678 N.Y.S.2d 889; 1998 N.Y. App. Div. LEXIS 7441
Court: Appellate Division of the Supreme Court of the State of New York; June 23, 1998; New York; State Appellate Court
The order from the Supreme Court of New York County, issued by Justice Harold Tompkins on December 9, 1997, addresses the defendant's motion for summary judgment. The court denied the motion in part but modified it by granting dismissal of the plaintiffs’ claims for lost profits. The court found the letter agreements ambiguous regarding the defendant’s obligation, suggesting that the defendant was only to conduct research for the plaintiffs’ evaluation without guaranteeing the formulation would meet the plaintiffs' specifications. The court ruled that plaintiffs' claims for lost profits were not supported by evidence indicating such damages were contemplated by the parties during negotiations or when the agreements were executed. The potential loss of profits was deemed speculative and not provable with reasonable certainty. Furthermore, the court decided against severing the action, as it involves a single defendant with similar commitments to related plaintiffs under nearly identical agreements, addressing the same legal issues and sharing witnesses for trial. The decision was unanimous, with the concurrence of Justices Sullivan, Rosenberger, Wallach, Tom, and Saxe.