David Saxe and Danielle Lesser Author Article on Court of Appeals Decision Revisiting the Doctrine of Anticipatory Repudiation

January 10, 2018 – The Hon. David B. Saxe, (ret.) and Danielle C. Lesser authored the article “Court of Appeals Revisits the Doctrine of Anticipatory Repudiation,” that appeared in the New York Law Journal on January 2, 2018. Michael Mix assisted in the drafting of the article.

The article examines Princes Point v. Muss Dev., No. 92, 2017 N.Y. LEXIS 3139 (N.Y. Oct. 19, 2017) in which the Court of Appeals addressed the issue of anticipatory repudiation.   In Princes Point, the buyer of a parcel of real estate sued to avoid the purchase of the parcel just one month prior to closing, claiming an amendment to the contract was induced by fraud.  Although the fraudulent inducement claim was dismissed, the Court of Appeals, in reversing the First Department, held that commencing the lawsuit was not, in and of itself, an anticipatory repudiation of the buyer's obligation to purchase the parcel.  The decision raises the possibility of  challenging the enforceability of an amendment to a contract by opening the door to severing the amendment from the original contract itself.    The result may not conform to the realities of commercial practice, and should be considered in the drafting of contract amendments.

Click here for a pdf of the article.