The Appellate Division affirmed the Order which granted plaintiffs' motion to compel discovery to the extent of directing defendants to comply with certain specified requests and to submit to depositions. Although some of the information plaintiff seeks pre- and post-dates the contracts at issue, the information is material and necessary to its claims, pursuant to CPLR 3101[a], since plaintiffs allege that defendants warranted their financial condition when they entered into the contracts, that they may have misrepresented their financial condition, and that they failed to meet their financial obligations under the contracts. The post-contract events are relevant to plaintiff's claims and potential damages, given conflicting evidence as to whether defendant remained in business or had sold or otherwise transferred its assets to a successor entity, and since the contracts provided that their terms would be binding on the parties' respective successors and assigns.
Strategic Funding Source, Inc. v. Steenbok, Inc., NY Slip Op 03127 (1st Dep't May 13, 2021)
