The Second Circuit today overturned summary judgment on claims to recover $69 million under an oral agreement.  The decision turned on whether eight promissory notes qualified as "securities" under New York’s version of the Uniform Commercial Code.  The New York Court of Appeals held that they did.  Because the New York U.C.C. abolishes the statute of frauds for pacts involving securities, the Second Circuit vacated the summary judgment in favor of defendants and remanded for further proceedings.  Highland Capital Mgmt. L.P. v. Schneider, No. 05-4729 (2d Cir. May 14, 2007).

Barry Barnett

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