Kelley Drye Client Dynamic Currency Conversion Wins Case On Summary Judgment

Monday, August 30, 2010 - 00:00

Kelley Drye obtained a significant victory for its clients Dynamic Currency Conversion, Inc. ("Dynamic"), Dynamic's President, David Nahor, and Mark Silverman, one of Dynamic's employees, in a lawsuit commenced by two of Dynamic's competitors. The Plaintiffs alleged that Dynamic tortiously interfered with a contract between the Plaintiffs and a third-party under which the parties agreed to work together to provide a financial service to credit card merchants that allows credit card holders to have transactions processed in their home currency when traveling abroad. The Plaintiffs asserted that Dynamic prevented the third-party from performing under the contract with Plaintiffs by entering into its own contract with the third-party that, according to Plaintiffs, had terms that were inconsistent with the third-party's contractual obligations to Plaintiffs. In April 2009, the trial court granted defendants' motion for summary judgment and dismissed the tortious interference claims. The trial court held, among other things, that "there is no evidence . . . that Dynamic did anything to induce [the third party] not to comply with its obligations under the [contract] with the plaintiffs." The trial court also held that Mr. Silverman, who was employed by the third-party when the alleged interference occurred, could not be liable to the Plaintiffs for his employer's alleged breach of contract because he was authorized by his employer to enter into the agreement and did not commit any independent torts.

The New York Appellate Division, Second Department, recently affirmed the trial court's decision in all respects and held that Plaintiffs failed to raise any triable issues of fact warranting a trial.

This matter was handled by partners Robert I. Steiner and David I. Zalman, and associates Anne M. Mangiardi, Veronica D. Jackson and Coleman T. Lechner.

Kelley Drye has been retained to represent the Official Committee of Unsecured Creditors of Jennifer Convertibles, Inc., and certain of its affiliates. On July 18, 2010, Jennifer Convertibles filed for chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York. At the first meeting of creditors on July 23, 2010, the nine-member Committee selected Kelley Drye as its bankruptcy counsel.

Headquartered in Woodbury, New York, the Debtors own and operate 130 sofa bed retail stores throughout the United States under the Jennifer Convertibles and Jennifer Leather names. In addition, the Debtors operate seven big box, full-line furniture stores under the Ashley Furniture HomeStore Brand pursuant to a license agreement with Ashley Furniture Industries, Inc.

The Debtors have proposed a restructuring involving a debt for equity swap with their largest supplier. The Kelley Drye team will be working with the Committee, the Debtors and other parties in interest to ensure a maximum return to unsecured creditors.

The Kelley Drye professionals handling the Jennifer Convertibles case include partners James S. Carr and Eric R. Wilson, associates Jason R. Adams, Stacia A. Neeley and Vikki Bollettino, and paralegal Marie Vicinanza.